Life insurance plans are tools that help the policyholder’s family in meeting their financial needs  after the death of policy holder.  Here are a few important reasons why one should buy life insurance plans?

Financial requirements of the family:

If the policy holder is the only person in the family who is earning, then the income of the family will cease after he/she is gone. They might face difficulties in fulfilling the basic needs like education, food. Hence, life plans provides financial aid to your family during such contingencies. This will help the family of the policy holder to be financially stable and secure in times of adversity.

Repayment of loans and other expenses:

If you have taken a loan, your family might have to bear the burden of the loan on your sudden death. Life insurance plans can help the people behind you for repayment loan as it provides a lump sum amount on the death of the policyholder. Drawing loan against insurance:

You can avail drawing a loan against your life insurance policy Achieve long term goals:

Since life insurance plans are long term commitment instruments it will help you achieve your long term goals like buying a house, child’s marriage or planning your retirement. You can fulfil your goals with a life plan as you receive a regular income every month.

 Tax benefit:

Life insurance plans are a good way of saving taxes. You can save tax under section 80 C of Income Tax Act of India. The premiums paid by you is eligible for tax deduction up to a limit of Rs 1,50,000.

Attain peace of mind:

The least you can do for your family in your absence is to secure their financial future. Even if it is a small amount you will be assured that your family has something with them. Life insurance policy provides protection cover to the family and also enables the person to save in a disciplinary manner which will help him build large corpus over the years.

It is always advisable to purchase life insurance plans at an early age, when you are young.