Life and its circumstances are fragile. Therefore, today the need for some kind of financial protection for the future becomes mandatory. There are various options available for the consideration of investment avenues. The most commonly expressed needs or desires of people are the need to save for the future family expenses and old age, a house to call their own, financial assistance in the event of contingencies like accidents etc. and of course, a certain degree of tax relief.

The periodical payments of premium become a habit. Unlike, other savings plans where only the accumulated savings is payable on maturity, the entire sum assured is payable in a Life Insurance plan. There are the bonus and loyalty additions that many Life Insurance plans boast of. In the case of endowment policies, benefits can be received at the time of anticipated expenditure like education, marriage etc. Pension plans provide a steady monthly income after the productive years. Life insurance additionally provides financial protection against the risk of sudden death.     

Housing loans are granted by the Life Insurance Corporation against all plans that cover risk. In addition, several Life policies have been especially introduced for housing loan purposes. General loans are also available on Life plans that have surrender value. These loans are ideal to meet unforeseen expenses. Further, a life Insurance Policy document is acceptable surety for a commercial loan. The policy itself can be surrendered for a cash sum to help tide over any financial difficulties. Permanent disability benefit is given in the case of disability due to accident.      

The premium paid on Life plans and specified investments like PF, NSC etc. are eligible for income tax rebate, subject to a collective ceiling of Rs.60, 000 per annum Maturity benefits, bonus etc. received under a Life Plan are fully exempt from tax, with the exception of Key-man Insurance, and other annuity schemes.