When it comes to life insurance policies, it is common for people to fall into a cycle of complacency and procrastination. We tend to think of emergencies as a distant speck on the horizon; there is a misplaced assurance that we can sign up for a life insurance policy tomorrow and that it would never be too late to subscribe to one.

The year 2020 changed that notion for many of us and that too in a painful way. The coronavirus pandemic showed us how lives can be upended in a matter of days and how the bedrock of stability that people take years to build can crumble in the event of emergencies. The virus made many privy to the unfortunate and unpleasant experience of either seeing loved ones fall ill or worse, to see them succumb, not to mention the heavy financial toll. The blows were easier to deal with for those who could resort to the protection offered by life insurance policies.

If you are still swaying on the fence with respect to the advantages of having the umbrage of a life insurance policy, here are five reasons to opt for one in 2021.

Safety Bubble for your loved ones

No amount of crystal ball gazing can prepare anyone for the vicissitudes of life but planning for untoward circumstances can make the episode of tiding through such circumstances less excruciating. A life insurance policy can go a long way in securing the future of your loved ones should something happen to you. No matter how unpleasant it sounds, it is always better to stay prepared for the possibility especially if you happen to be the sole breadwinner of your family.

Tax saving benefits

Taxes are necessary evils but thankfully we have myriad ways in which we can reduce our tax liabilities. Insurance premiums are eligible for a maximum tax deduction of upto Rs 1.5 lakh under Section 80C of the Income Tax Act and depending on the type of insurance policy, tax-free death benefits can also be availed by the nominees of the subscriber.

Aiding in wealth creation

There are various life insurance policies that also come with the saving plan i.e. they grant you the flexibility of investing your money in profitable ventures. For instance, should you choose a traditional or unit-liked policy, you pay a premium each month that exceeds what it costs to insure you and the extra money can be invested which can lead to capital appreciation. The extra cash can then be borrowed against the policy or you can sell it or draw income from it. Also, the benefits that you would be entitled to, once the policy has matured are significantly more than the total premium paid.

Health benefits

The coronavirus pandemic also brought to light the fragility of healthcare services and how difficult it can be to access them during a public health emergency especially if you do not have the requisite monetary capabilities to knock on the doors of private healthcare providers.There are numerous life insurance policies that provide extra benefits such as health coverage Such policies can significantly bring down your medical expenses in the event of any major health emergencies or mishaps. It is also common for insurers to provide additional riders for specific illnesses. The right life insurance policy can thus be a great way to safeguard the health of you and your loved ones even if you are facing financial troubles. 

Security in your retirement years

Life insurance policies can also be an excellent way to help you secure your retirement years. There are various life insurance products that offer retirement benefits so that you can have a regular stream of income every month after you have made an exit from the nine-to-five grind. Who wouldn’t like their retirement savings to last until they do? With these life insurance plans, you can ensure you have a regular stream of income every month while still maintaining the death cover. And should you be subscribed to a life insurance plan that also provides health cover, you can rest assured that your retirement years will be calm and you can focus on ticking off items from your bucket list without having to worry about your financial safety.

Besides these,the biggest advantage of having a life insurance policy is the peace of mind that you will be afforded – knowing that you have a solid backing for your loved ones should you not be around is nothing short of a blessing. 

HDFC Life, one of the leading insurance providers in the country understands all these concerns and has crafted a variety of insurance products that can efficiently take care of your insurance needs. One such example is the HDFC Life Click to Protect Life, which is a great term plan that provides benefits in accordance with the changes in your lifestyle and life stages so that you and your loved ones have comprehensive financial protection at all times. You have the option to choose a cover which fits your needs from three plan options. Unlike regular plans, the Click to Protect Life gives you the benefit of auto balancing death and critical illness with age and you can also opt various add-on benefits like return of premium option, accidental death benefit option and many more.