Insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected financial losses. The insurance company pays you or someone you choose if something bad happens to you.
While building an investment corpus, the importance of Insurance can never be neglected. Different kinds of insurance products help protect you and your loved ones in different ways against the unforeseen expenses which may be incurred due to accidents, illness, disability, damage to assets and death. Maintaining financial stability for your dependents should be one of the most important objectives, not only when one is alive but also in case of unforeseen circumstances which could lead to ill-health or loss of life for the income earner in the family. To build financial protection for you and your family in case of such unforeseen circumstances we can facilitate building up some of the most efficient insurance plans through our tie ups.
There are many different types of insurance.
Life insurance:
Pays a beneficiary you select a set amount of money if or when you die. The money from your life insurance policy can help your family pay bills and cover living expenses. There are different types of life insurance. One is term life insurance, which pays a benefit only if the insured person dies during the term of the policy (usually from one to 30 years). Another is whole life insurance, which pays a benefit whenever the insured person dies.
Health insurance:
Health insurance is a type of insurance that covers medical expenses incurred on an illnessor injury. These medical expenses include hospitalisation expenses, medicine cost and doctor/physician fees as well.
Health insurance aims to take care of your expenses in a time of medical crisis. To put it simply, the insured pays regular premiums to the insurance provider, and in return, they offer financial support to them.
Top Benefits of Buying Insurance in Early Years of Life
Low Premium Amount: When an individual buys a insurance plan early in their life they get benefited with a low premium amount for the policy purchased. It must be noted that the premium cost for life and health insurance policies increase with the passing age. Since at a young age, individuals have less responsibilities and good health, buying a life and health insurance is highly recommended in the early years of life.
Early Coverage For Loved Ones:By buying term insurance early in life, you will be able to financially cover your loved ones as well. While you may not feel the need to cover your family members financially in the early years of your life, you may be leaving them in a vulnerable state in case an unfortunate incident results in your life. Your family will have to financially struggle a lot as well as compromise on their life goals in case that happens. On the contrary, an early and informed move in your 20s or early 30s will help you keep your family members out of financial hardships and even continue living their life peacefully even if you are not there to take care of them.
Early Tax Benefits: One of the key reasons people buy insurance is tax benefits. You too can reap benefits of tax benefits under different Sections of the Income Tax Act, 1961. In other words, early purchase of insurance can not only provide early financial stability, but also early tax benefits. Note that a insurance policyholder, irrespective of their age, can avail benefits of tax deduction under Section 80C, Section 80D, and Section 10 (10D) that vary in their benefits.
