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Life Insurance is a contract by which you can protect yourself
against specific losses by paying a premium over a period
of time. Since each one of us, during our lives are faced
with numerous risks - failing health, financial losses, accidents
and even fatalities, our instinct drives us to cover ourselves
against those risks. Though an insurance cover can't protect
you against the emotional losses arising out of these risks,
it softens the economic crisis that usually accompanies these
losses.
Simply put, life brings with it many surprises, both pleasant
and unpleasant. By taking a Life Insurance Plan one can ensure
that he / she is better prepared to face uncertainties in
number of ways.
What are the advantages of Life Insurance
?
Most importantly, we need life insurance to protect the people
we love, taking care that our family has a means to look after
itself after we are gone. In a nutshell, it is to protect
the economic value of a human life for the benefit of those
financially dependent on him.
For example - Suppose you suffer an injury
that keeps you from earning? Would you like to be a financial
burden on your family, already losing out on your salary?
With a life insurance policy, you are protected. Your family
is protected.
Insurance is also a means to Save and Invest. The periodic
premiums are like savings and you are assured of a lump sum
amount on maturity. A policy can come in really handy at the
time of your child's education or marriage. Besides, it can
be used as supplemental retirement income.
Life insurance is one of the best tax saving options today.
Your tax can be saved twice on a life insurance policy-once
when you pay your premiums and once when you receive maturity
benefits. Money saved is money earned!
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