Why Do Salaried People Needs Life Insurance?
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You’ve got your first serious money, and you’ve got big plans for using it to achieve your life goals. You might want to get gifts for someone special, or plan an unforgettable night with friends or perhaps indulge in a luxury or two for yourself! The list is endless. However, there is another avenue that you must think of. Buying a simple term life insurance plan. This may seem unusual, perhaps, but read on to see why this may be a really smart thing to do for achieving yours and your family’s life goals.
Reasons Why You Should Purchase Life Insurance With Your Salary
Read on to know what the main reasons to buy life insurance with your salary:
1. Financial Discipline
It’s never too early to start a good habit, especially when it comes to your finances. And the earlier you start, the sooner you will gain financial independence. By investing in a term plan with your salary, you will take the first step in this direction. By starting early, you can be insured for a longer period of time, and your lower age and general good health will also result in a lower premium. By starting off with investing a part of your salary in a term plan, you’re making sure that you create a healthy habit of planning your finances early, while enjoying decades of low premiums.
2. Big Cover, Low Premium
The best thing about buying a life insurance plan early, is the cost benefit to you. You pay a nominal amount and get a substantial life cover. This is because you have age, health and limited liabilities on your side. And the best part - you will pay the same amount of low premium throughout your term. The life cover will ensure your loved ones have the financial support to achieve their life goals, even in your absence.
3. Tax Planning
Now that you’re earning an income, you need to think about taxes too. You will probably be filing taxes for the first time and by paying a part of your income as a premium in a term life insurance plan, you can reduce your tax liability. You can avail tax benefit up to Rs 1.5 lakh from your taxable income under Section 80C of the Income Tax Act, 1961 subject to provisions contained therein.
4. Memorable, Smart And Responsible
You’re always going to remember what you did with your salary. Why not do something that you can pat yourself on the back for? Taking on a term life insurance plan is one way of ensuring that you not only have something responsible to share for a really long time, it also ensures you are building a contingency plan for your loved ones very early on in life. And this will make you remember what you did with your salary long after all the selfies are buried in your phone’s archives.
Conclusion
Life insurance might not be an instinctive purchase with your salary, but these compelling reasons may convince you that it may be a very worthwhile one. By putting an insurance policy in place today, you form a healthy financial habit, pay lower premiums and save taxes on a relatively inexpensive insurance policy while also ensuring that your family’s life goals are met.
Also read- Which Investment Option Should You Pick?
