Have you ever boarded the wrong plane and reached a destination with not much money left in your pocket? Or have you tried snorkelling without a guide and proper pieces of equipment? For sure answer to both of these must be a No but, why?

In the two situations mentioned above, you definitely need a savior. Either, you would need a lot of money or a fearless hope that no misfortune will affect you. It can be possible but definitely could be an unreasonable option.

We live in India where general issues like the unruly rise of the population, the number of cars and hence the increase in traffic strike really hard. Due to the unmatched rise in the number of cars and other dynamics, probability of mishaps has also risen.

These accidental mishaps can sometimes be devastating for you, your family and other third parties. It can leave you and the others, involved in the accident, financially strained and distressed. Hence, the government of India made it mandatory for vehicle owners to buy at least aThird Party Insurance.

Benefits of Car Insurance

• The lawsuits, including legal fees if held liable for the damage.
• Bills of repair due to damage caused in an accident.
• Damages other than an accident caused by terrorism, earthquake etc.
• Benefits to the survivors of the deceased.

Life insurance can give you lasting peace of mind in terms of the assurance that you have provided a legacy. That’s because the right coverage can offer a valuable combination of benefits, many guaranteed by the claims-paying ability of New York Life—so that you and your loved ones know exactly what you’re getting.³ Of course, you have to make a long-term commitment to paying premiums and keeping the policy in force.  Some of the most common reasons for buying life insurance include: 

1. Guaranteed protection
   If you have a family, a business, or others who depend on you, the life insurance benefit of a whole life policy acts as a financial safety net. When you die, your beneficiaries will receive a lump-sum payment that is guaranteed to be paid in full (provided all premiums are paid and there are no outstanding loans). It’s essential protection that you can count on to be there for your loved ones when needed.
2. Income replacement
   Imagine what would happen to your family if the income you provide suddenly disappeared. With whole life insurance, you can help make sure that your loved ones have the money they need to help:

• Pay the mortgage
• Afford childcare, health care, or other services 
• Cover tuition or other college expenses 
• Eliminate household debt
• Preserve a family business

3. Tax-free benefit
Your beneficiaries will be able to enjoy every penny you leave them. That’s because the benefit of a life insurance policy is generally passed along federal income tax free.

4. Guaranteed cash value growth
As you pay your premiums, your Whole Life policy builds cash value that is guaranteed to grow—tax deferred—and can help meet a variety of financial goals: 

• Supplement retirement income 
• Fund a child or grandchild’s education 
• Pay off a mortgage 
• Protect existing assets 
• Establish an emergency fund 

5. Dividend potential
One of the benefits of purchasing whole life insurance from New York Life is that you will be eligible to receive dividends.⁴ Although they are not guaranteed, when dividends are awarded, you can take them in cash, use them to offset your premiums, or use them to buy paid-up additional insurance that increases your coverage and cash value, use them to offset your premiums, or take them in cash.

6. Optional riders
There are several ways to tailor a whole life policy to meet your individual needs. For an additional cost, you can use riders to purchase additional protection without further underwriting, to pay your premiums if you become disabled, to use some of your face amount to pay for chronic illnesses, or to purchase coverage for your children. Your agent can help you decide if any of these riders are right for you.

• The financial loss to the family due to the unfortunate death of the sole earner can be covered by insurance plans. The family can also repay any debts like home loans or other debts which the person insured may have incurred in his/her lifetime
• Insurance plans will help your family maintain their standard of living in case you are not around in the future. This will help them cover the costs of running the household through the insurance lump sum payout. The insurance money will give your family some much-needed breathing space along with coverage for all expenditure in case of death/accident/medical emergency of the policyholder
• Insurance plans will help in protecting the future of your child in terms of his/her education. They will make sure that your children are financially secured while pursuing their dreams and ambitions without any compromises, even when you are not around
• Many insurance plans come with savings and investment schemes along with regular coverage. These help in building wealth/savings for the future through regular investments. You pay premiums regularly and a portion of the same goes towards life coverage while the other portion goes towards either a savings plan or investment plan, whichever you choose based on your future goals and needs
• Insurance helps protect your home in the event of any unforeseen calamity or damage. Your home insurance plan will help you get coverage for damages to your home and pay for the cost of repairs or rebuilding, whichever is needed. If you have coverage for valuables and items inside the house, then you can purchase replacement items with the insurance money

• Helps with long-term goals

  One of the most important benefits of life insurance is that it enables you to save and grow your money. You can use this amount to meet your long-term goals, like buying a house, starting a venture, saving for your child’s education or wedding, and more

• Useful for retirement planning

  Life insurance can enable you to stay financially independent even during your retirement. Life insurance plans like annuity plans provide you with a fixed income for life. They are low-risk plans that help you maintain your current lifestyle, meet medical expenses and meet your post-retirement goals

• Provides tax benefits

  Life insurance helps you plan for the future, while helping you save tax* in the present. The premiums paid under the policy are allowed as tax* deductions of up to ₹ 1.5 lakh per annum subject to conditions under Section 80C of The Income Tax Act, 1961. You can save up to ₹ 46,800/- in taxes* every year. Further, the amounts received under the policy are also exempt* subject to conditions under Section 10(10D) of the Income Tax Act, 1961.