Why Get Life Insurance| North Loop Official Blog
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North Loop
08 Oct 2020

Why Get Life Insurance

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What is Life Insurance?

Life insurance is financial protection or cover for a contingency linked with human life like an accident, retirement, temporary or permanent disability, death etc. Even though human life cannot be valued, for periodic fixed payments to a life insurance company you can receive a monetary sum that is determined based on the loss of income due to any of the above reasons. Certain types of life insurance policies also provide critical illness benefits or create additional protection for your family in case of any unfortunate event.

Why is Life Insurance Important?

In case you are wondering why is life insurance important, then you must read the various benefits of having a life insurance cover that we have listed below -

Financial security - Life insurance policy provides peace of mind and financial security because, in case of any unfortunate event or unprecedented occurrence, it provides a financial safety net for your family. An adequate life insurance cover ensures that all debts and financial liabilities are well-taken care of.

Wealth creation - Certain life insurance policies invest your premium in different investment classes to offer the opportunity to create wealth. These investment classes deliver superior risk-adjusted returns that beat inflation and grow your corpus.

Tax savings - Life insurance plans can offer dual benefits. The premiums you pay for it become eligible for tax deduction under Section 80C of the Income Tax Act. The allowable deduction is up to Rs.1.5 lakh annually that gets reduced from your gross income, thus lowering the tax liability. Additionally, the maturity insurance plans can be entirely tax-free. This benefit can get claimed under Section 10 (10D) of the Income Tax Act, 1961.

Age-based saving - You can apply for a life insurance policy with low premium rates at a younger age as compared to buying the same at a later stage in life. A similar policy can attract higher premium payments as age increases. That is the reason, applying for one earlier can be beneficial as it allows you to save some money.

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Why take Life Insurance?

If you are wondering as to 'why take life insurance', then you should read these four compelling reasons that we have listed below for buying a life insurance policy -

Dealing with debt - Dealing with financial liabilities during a crisis can be extremely disturbing. However, if you have invested in a life insurance policy, any outstanding debt such as home loan, auto loan, or personal loan can get taken care of.

Supplements retirement goals - A life insurance plan can ensure that you have a regular stream of income every month. It is like a pension plan wherein you can enjoy a steady income every month even after retirement by putting money regularly in a life insurance product.

Achieve long term goals - Different life insurance policies offer diverse investment options that can help you achieve your long-term goals like buying a house or planning your retirement.

Illness protection - Some life insurance policies offer features that cover severe ailments like heart attacks and cancer. That is why as you move towards retirement with increasing age, a life insurance policy for coverage of such illnesses can prove to be very useful.

What is Life Insurance Cash Value?

Life Insurance cash value is a type of permanent life insurance that includes an investment feature. In this type of policy, a portion of each premium goes towards insuring your life while the other goes towards building up a cash value. This cash value is essentially a part of the policy that earns interest and can be available for you to withdraw or borrow in case of an emergency.

Which life insurance company is best?

After considering several factors, we have created a list to answer which life insurance company is best in India currently. Their names are as follows -
Max Life Insurance Company
HDFC Life Insurance Company
ICICI Prudential Life Insurance
Tata AIA Life Insurance Company
Bharti AXA Life Insurance Company
Bajaj Allianz Life Insurance Company
SBI Life Insurance Company
Reliance Nippon Life Insurance Company
AEGON Life Insurance Company

How to buy life insurance online?

You can buy life insurance online by following the steps below -
Explore and compare the different life insurance plans available online.
Find the life insurance policy that is best suited to you.
Choose an online platform where you can buy the policy.
Apply for the policy and pay premiums.

You can invest in a life insurance policy online by signing up withNorth Loop. We offer a 100% online application that is seamless, quick and can get done from the comfort of your home.

To sign up with North Loop, click here.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.