It acts as a financial net for an eventuality linked with human life, such as retirement, disability, accident, death, etc. Life is unpredictable; one can never guess what happens next. In case of sudden demise of the primary breadwinner of a family, apart from the emotional trauma, his/her family is at the risk of a financial crunch. In case this person is the sole breadwinner of the family, his/her dependents face a loss of income.

Though there is no premium calculator that can calculate the worth of a human life, what needs to be done must be done. To calculate the sum assured, the insurer takes your lifestyle and finances into consideration. This sum assured is provided to insured’s family after his/her demise in order to offer them a much-needed financial support. In order to make sure that one’s family doesn’t have to make any compromises due to financial crunches, one should buy a suitable life plan.

• Unpredictability-Life is unpredictable. One can’t predict when his/her life will come to an end. If it were up to people, nobody would want to leave without ensuring the financial security of his/her family. Sadly, it’s not up to them. The solution is, one must buy life insurance and be a step ahead so that the financial goals set for his/her family can be accomplished even when he/she isn’t around.
• Financial Cushion- It provides much-needed financial support to insured’s family by compensating for the loss of income.
• Debt-Proof Future- The sudden demise of a breadwinner is nothing short of a catastrophe. While it is an emotional crisis initially, it can get converted into a financial one in no time. With the help of life insurance, any outstanding debt, such as a motor loan, personal loan, a home loan, etc. would be taken care.
• The Accomplishment of Retirement Goals- While life plan is a perfect option to accomplish long-term goals, it helps accomplish retirement goals as well. Some life insurance plans offer diverse investment opportunities and some insurance plans offer performance-based dividends.
• Tax Benefits- A policyholder can avail tax-benefits regardless the type of life insurance he/she purchases. As per section 80 C of the income tax act, the premium paid towards an plan is eligible for tax benefits up to Rs. 1 lakh 50 thousand.
• Mental Peace- It offers much-needed peace of mind to the policyholder by assuring financial future of his/her family. Even a basic plan helps to generate corpus to take care of the future financial needs of insured’s family.
• Savings Tool- In case a person opts for a traditional/unit-linked plan, he/she pays an enhanced insurance premium. This extra amount of money is invested in the insured’s preferred fund and consequently acts as a savings tool.
• Children’s Future Expenses- A life plan takes care of all the future expenses of a policyholder’s children, such as education and wedding expenses. These days, the cost of raising a child is sky-high. Not just that, even getting admission in a reputed college costs a bomb. This policy ensures that the policyholder’s children don’t have to make any compromises as far as their education and personal needs are concerned.
• Business Security- While some life insurance plans cater to the needs of the insured and his/her family, there are some insurance plans available in the market that offer support to the insured’s business. It also enables a business partner to buy the share of his/her deceased business partner.

Once he/she knows what he wants, the next step is to shop around and compare life insurance plans that fulfill his/her requirement. The best insurance policy is plan that adapts to insurance buyer’s needs. This life insurance will help his/her family to sail through the tough times with grace.