Benefits Of Life Insurance – Tax Benefits, Life Cover And More

By Author: raj sharma
Total Articles: 9
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Life insurance is very well known in providing financial security to individuals. Traditionally, life insurance was not as popular and accepted as today. But, when people realized that insurance provided financial security on account of premature death of an individual, people noticed life insurance benefits and started applying for life insurance policies.

Today, in insurance market, there are numerous insurance companies which offer similar and very unique life insurance policies several different combinations of features and advantages. Some of those life insurance policies include term life insurance, permanent life insurance, whole life insurance, variable insurance, group insurance, pension plans, children’s plans, investment plans, etc. These are some of the most popular types of life insurance policies available with different life insurance companies. Each policy has its own features and advantages which make them unique.

One of the main advantages of life insurance is that it provides life cover to individuals and their families. Premature death of earning member can have devastating affects on a family. ...
... But, life cover provided by insurance gives them financial security and means to earn livelihood.

One of the major advantages of life insurance is that it is applicable to every individual irrespective of income earned, life style and such factors. It is ideally suited for salaried employees as well as for business individuals. In case of salaried employees, premature death of the bread-earner can be the greatest disadvantage. The case is similar to business people as well. With life insurance companies such as cover for life, annuity on premature death, annuity after completing the tenure of the policy, tax benefits in case of income tax assessees, etc are some of the many advantages of life insurance which can be realized.
When we look at the advantages of life insurance in detail, our understanding can be much clearer.

Tax Benefits: Tax benefits according to the Income Tax Act, life insurance benefits whether it is death annuity or tenure completion annuity, accidental benefits, critical illness benefits, etc are not taxable. Even premiums paid under life insurance policies are given exemption under the income tax.

Life Cover: Life cover is one of the major features and advantages of insurance. Cover for life is the protection offered to policy holder as well as for his / her family. Without cover for life, it cannot be considered as life insurance and it is meaningless.

Money saving: Money saving is another advantage from life insurance. Thrift is one of the habits which can be learned and practiced with life insurance. Applying for life insurance policy with features of premature death and annuity after tenure completion can be considered as money saving insurance policies. Money saving is inculcated to individuals in such a good way.

About The Author
Raj Sharma is the author of this article. In this article he has discussed about the Benefits of Best Life Insurance . To know more about Life Insurance Companies and comparison of. more information Visit the site: www.policybazaar.com