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Buying a life insurance plan with adequate coverage can be a financial cushion for your family. It ensures that the family's lifestyle and goals are not compromised due to unfortunate events such as death or disability.
Some life insurance plans, like Unit Linked Insurance Plans (ULIPs), offer wealth creation opportunities to policyholders, along with life coverage. These plans let you invest your premiums in different securities, like equity, debt, and more, to enjoy the benefits of inflation-beating returns.
Life insurance policies offer valuable tax benefits, enabling you to enhance your returns and accumulate savings. The premiums paid for the policy qualify for deduction under Section 80C of the Income Tax Act, 1961, up to ₹ 1.5 lakhs annually, subject to certain conditions. Furthermore, the funds withdrawn from the policy after the lock-in period and the maturity value received from life insurance plans are also tax-free.
Your source of income will no longer exist with you after retirement. It is crucial to have enough money saved up so that, when you retire, you won't need to worry about anything. Together with a steady income stream, retirement plans offer life insurance.