No one can predict how their life will turn out. You could win the lottery or get that job offer you’ve been hoping for years tomorrow. You might want to start your own business, or you might want to make sure that your kids never have to work hard to reach their goals. One easy thing you can do to help you achieve all your financial goals is to buy insurance.

What is life insurance, and why must you invest in it? 

Life insurance is a contract between the policyholder and the insurer wherein the insurer agrees to provide a cash lump sum in the unfortunate event of the policyholder’s demise. 

If you’re not sure if life insurance is right for you, here are 10 reasons why getting a good policy can help you:

  1. It saves you money on taxes:
    If for no other reason, you can buy life insurance because you can deduct the premiums you pay from your taxes. The taxes vary in the old and new tax regimes and are subject to change.
  2. It helps you make plans for when you retire:
    You can invest in retirement plans that are made by insurance companies just for you. The earlier you buy one of these plans, the more money you will have whenever you decide to retire.
  3. It can help your family pay off debts:
    We never know what’s going to happen in life. If something unfortunate happened to you, your family might have to pay off your car loan, credit card bill, or other loans. The money that comes from your life insurance policy can help your family pay off these liabilities.
  4. It is cost-effective:
    The sooner you buy insurance, the more it could help you out. If you are young and in good health, your premiums will probably be lower, and your life insurance policy coverage will be higher.
  5.  It can help you get things done:
    If you have your own business, you should for sure buy a term plan. Term plans usually have lower premiums and can help your business partner to pay off all of your debts if you are no longer around.
  6. It can help you reach your long-term goals:
    Depending on the insurance plan you choose, you can invest small amounts that will add up over time to help you buy your dream home or start that business you’ve always wanted.
  7. It provides a safety net for money:
    If you are the primary breadwinner of your family, your passing away can hurt your family both emotionally and financially. If you have a good life insurance plan, your family will have money to help them get through their grief.
  8. It can act as a savings plan:
    You can think of your insurance as your own savings account. In addition to keeping a portion of your salary safe, many policies also let you borrow money against your insurance. This can be helpful if you need to sell assets quickly.
  9. It can be modified to suit your needs:
    Depending on the insurer and policy you choose, you may be able to provide additional protection against critical illnesses, accidental deaths, and disabilities, and so on by opting for riders.  This helps increase the financial security for you and your family.
  10. It gives peace of mind:
    Insurance gives you peace of mind. When you have life insurance, you know that you’ve done your bit to protect your family’s financial future.

If you’re ready to buy a good insurance policy, you should use a life insurance premium calculator to get a premium estimate for the same. You could also consider opting for Unit-linked Insurance Plans, also known as ULIPs. They are a  popular option because they provide the double benefit of having a life cover as well as investing in specific market-linked funds. One of the unique features of the Unit Linked Insurance Plan is that you are able to invest in a variety of funds. These include equity funds, debt funds or can also be a mix of both. One more critical aspect of Unit Linked Insurance Plans (ULIPs) is the lock-in period. They come with a lock-in period of five years. This feature allows you to remain invested for a minimum of five years, thereby inculcating the habit of disciplined savings and maximizing market-linked ULIP returns.