Why Life Insurance Policy is the Gateway to Financial Freedom?

Financial planning is not only about growing wealth but also managing risks effectively. There are multiple instruments for savings but life insurance is the key to manage financial risks and see you through uncertainties. While most Indians have been brought up to save in safe instruments such as fixed deposits, it is essential to understand why life insurance policy is the gateway to financial freedom.

Buying a whole life insurance plan is an important financial decision that one needs to make during their adult life. It becomes imperative that you invest in life insurance especially if you are the sole earner in your family. This becomes a financial cover for your family and will allow them to maintain their standard of living. Life insurance policies can be purchased where you pay premium monthly or yearly and they will cover you against death, life threatening diseases and can also provide a suitable payment provision post retirement. 

The other option is to opt for single premium life insurance. It is a single premium endowment plan which also acts as a protection plan. Lump sum is paid at the outset of the policy. This can provide protection against death and can also provide finances post the end of the policy.

Why life insurance is necessary?

There are multiple reasons to opt for life insurance and unlock your pathway to freedom.

Financial security for your family: The primary reason to opt for life insurance is to make your family financially secure. Life insurance plans not only ensure financial stability but can also provide for your children’s education and college fees, health requirements of your spouse and parents, marriage and events in the family, and even day to day financial requirements. 

Also, whole life insurance plans will cover for any outstanding debts like home loan, auto loan, education loan and credit card loan. This ensures that your nominees or family have the freedom to maintain their lifestyle without being burdened. During the time of crisis, your family will not be overcome by financial worries. Life insurance is a small price to pay for your family’s protected wholesome future.

Save taxes: It is an amazing plan to save tax and plan your future retirement life at the same time. Life insurance policy provides dual tax benefits. The premiums you pay are eligible for a maximum tax benefit of Rs. 1.5 lakhs under Section 80C and the proceeds after death/maturity are tax free under Section 10D of the Income Tax Act, 1961. Life insurance plan enables you to do tax planning and preserve your financial resources for your family’s needs.

Loan benefits: Certain life insurance plans allow you to borrow certain amount of premium for education and college fees, marriage plans and other financial needs. So, it also helps you maintain liquidity and acts as an asset against which loan is granted.Life insurance policy is a tool for forced savings and is a great investment. It provides financial protection to the owner and the dependents of the policy owner. It is your path to financial freedom.

Explore PNB MetLife's long term savings plan and mera term plan plus to find your gateway to financial