scorecardresearchLife insurance can bridge the deficit in meeting your financial goals. Here's how

Life insurance can bridge the deficit in meeting your financial goals. Here's how

Updated: 02 Dec 2022, 08:39 AM IST
TL;DR.
The trigger for buying a life insurance policy must not stem from an accident or incident. Rather, you must include it as an essential input to your financial goals.
Buy a life insurance policy to meet your financial goals.

Buy a life insurance policy to meet your financial goals.

With so many opportunities to invest and grow money, we tend to forget how the inherent security in a life insurance policy can help us align with our life goals. Other than which insurance policy we must buy, what also matters is how we must buy it. 

If you think that life insurance works only when you are dead, think again. It is an essential investment tool that can fill in the necessary money deficit in case of dire circumstances and help you meet your financial goals. This is because the policy amount is fixed. Either it is handed over to your loved ones in the event of your untimely demise or you benefit from the maturity proceeds if you survive the policy tenure. Either way, it shields you and your dependents from financial distress. 

You may argue that bonds and fixed deposits also do the same thing. What you do not realise is that they have an investment tenure, which means that these will not fill in the necessary gap, in case anything untoward happens to you. Apart, not all investment options may yield you the desired returns. So, the returns from these policies can help fill in the gap in your financial goals.

For example, if you want to save for your child’s higher education but are in no mood to invest in the market owing to the risks involved and long-term fixed deposits (FDs) and recurring deposits (RDs) due to the abysmal returns, the best way out perhaps is a life insurance policy. With so many kinds of life insurance policies sold by multiple companies, you can choose the best suited for your goal. 

Irrespective of how many high-earning investment options you may have, you could consider investing in a life insurance policy for its fixed returns and stability.

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First Published: 02 Dec 2022, 08:39 AM IST