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May 02, 2018 10

What makes life insurance policy a must-have investment

A life insurance policy in the first thing you should ever invest in when you start earning. Life insurance is not a great saving tool but also a way to secure your family financially. It is an investment as well as a security.

There are many types of life insurance policies out there and you can choose one that best fits your needs. You can have an insurance policy with the ultimate aim of saving or investing your life’s earnings, you can have one with the aim of providing for future expenses or you can have for providing financial security to your dependents in your absence.

The first rule of saving is to invest in a life insurance policy. You can buy life insurance online now, so the process is also convenient and hassle-free. Even if you have zero knowledge of finance, a life insurance policy is an easy to use and avail off financial tool to get you started.

Here are five reasons why you should buy a life insurance policy for yourself and your family.

1. The number one reason why you should but life insurance policy is to look after their dependants and family financial, after they are gone. The life insurance premium that the policyholder pays goes toward a bigger sum that is paid to the nominee in case of the death of the policyholder.

2. Another reason is to pay off debt. Even if you’re the sole breadwinner of the family, your life insurance policy can help pay off any debt or loans they have. You don’t want to leave your family to pay off your debt when you’re gone.

3. Life insurance policy is a great savings tool as well. Some types of life insurance such as ULIPs provide the option of investing a part of life insurance premium into equity or debt. This way you can invest in order to save for long term goals such as children’s future, retirement and so on.

4. A life insurance policy doesn’t only provide financial help when the policy holder passes away. Some forms of life insurance also pay you at the end of the policy term. This is a great way to save for retirement.

5. When you are young, you can buy life insurance at a much cheaper rate then when you are older. This way you can save from a very young age and use the lump sum you receive at the end of the term for investing, purchasing property or bettering your life in any other way.

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