5 Crucial Consequences of Not Buying Life Insurance
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Misconceptions like healthy people do not need a life insurance policy or only financially sound people can avail a life insurance policy often discourage people from purchasing a plan at the right time and regret in the face of an unfortunate event. Hence, it is advisable not to jump to conclusions and talk to a credible financial advisor or an entrusted life agent to get a correct idea about the purpose of a life insurance policy.
Read on to find out what would happen if you do not purchase a life insurance policy.
Consequences of Not Buying Life Insurance
Here are the five major consequences of not purchasing a life insurance policy.
1. Financial Crisis for the Family
The most severe consequence of not buying a life insurance policy can be the financial burden on your family and dependents after your demise. As the sole breadwinner of the family, it is your duty to ensure the survival of your loved ones after you. A life insurance policy is an excellent way to provide financial safety to secure your family’s lifestyle and future aspirations.
2. Leaving Your Family in Debt
A pool of debts like home loans and student loans can further break your already grieving family. Hence, purchasing a life insurance policy is highly advisable in this scenario as the death benefits provided to the beneficiary or the family would help in debt and loan repayments as well.
3. Dependence on Others After Retirement
With no prospect of income creation, retirement can be an overwhelming phase for a person who has been independent his/her whole life. You will become dependent on your children, relatives or friends if you don't have a well-thought retirement plan. Here, having life insurance policies like retirement plans can help generate wealth even after your retirement by replacing the monthly income with regular pensions and meeting your personal needs.
4. Uncertain Future of Your Child
Every parent motivates their children to achieve great heights in their personal and professional life. But only a few can support their goals due to impoverished conditions. Buying the right insurance policy will surely land you among the few who can afford their child's education and other future goals by investing in the child's Insurance policy plans provided by the insurance providers.
5. No Tax Savings
A life insurance policy can help in saving the income tax paid from your hard-earned money. Tax benefits are provided under Section 80C and Section 10(10D) of the Income Tax Act, which can help you save up to Rs 1.5 Lakh on the payable premium.
Takeaway
It is advisable to purchase a suitable Life Insurance plan to avoid the consequences mentioned above. Stated as the most significant financial decision, a life insurance policy won't lead to your despair when done right.
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