Four Reasons Why Your Income Also Needs Insurance

25-August-2021 |

You love your family. You work hard all your life to take care of their needs and provide them with everything that they aspire for. You buy a home, you take a car, but nothing is more important to your family than your life and your ability to make a living. Have you ever worried about what will happen to your family in case you are not around?

Your family depends on your income to fulfil their needs. And when you are not there, your loved ones might end up struggling financially even to meet the most basic of their living expenses. Think about how your family will pay for your child’s education? How will you pay for the home loan EMIs? How will they fulfil their everyday needs? And more. 

A perfect answer to these questions is insurance. By purchasing in the right life insurance policy or securing your income, you can be assured that your family will be financially secure even in your absence. With income insurance, your family will receive a regular influx of income even after you are gone. Your family can use the regular earnings to meet their living expenses, maintain their standard of living and still achieve financial goals like paying for your child’s education, sponsoring the marriage of your child, paying off any pending financial liabilities and more. 

 

Here are the top four reasons why your income also needs insurance:

 

  • Cover your family's necessities: As a primary breadwinner of the family, your loved ones depend on your income for their needs. Even the most necessities of the household are fulfilled with the monthly income that you bring. But in case of your untimely demise, your dependents might struggle to maintain their standard of living. They might also have to make significant financial sacrifices because of the lack of income. 

    However, if you make a wise decision and invest in income protection insurance, you can save your family the financial struggle, which they otherwise might encounter in your absence. The income plan will pay out a regular sum to your dependents, enabling them to maintain a decent standard of living. Regular income helps to simplify the life of your dependents after your untimely demise.

    Even though no amount of money can replace your loss for them but having a decent life insurance policy can prevent financial hardship for your family. 

  • Pay off any pending liabilities: Life is unpredictable, and no matter how well you plan, some things can go unaccounted for. When you are aspiring to achieve specific goals, you might take up a loan to fulfil those dreams.

    For example, you might take a home loan or car loan when you have a stable source of income and have a proper financial plan to pay off your debts or any other financial liabilities. But what happens in case of your untimely demise? Who will be left to pay off your pending liabilities? How will your family pay off the EMIs or your credit card bills in a time when they are already struggling to meet their basic living expenses?

    The answer to all your worries is a comprehensive income insurance policy. The income plan will act as a replacement for your income for the family in the event of your demise. Your dependents can use the life insurance income to pay off the home loan or car loan EMIs, pay any credit card bills or any other pending financial liabilities.

    Income protection insurance comes to the family’s rescue at a time when they are already dealing with the financial stress of losing their regular source of income.

  • Sponsor your child’s education expenses: Education is an indispensable need of your child, and as a parent, it is your biggest financial worry. Education expenses in India are rising even more sharply than the general inflation rate. This means that in the coming years, sponsoring the education of your child will be a huge financial burden. But if you plan early, you can easily cover the education cost without being financially stressed.

    However, this is possible when you have a regular source of income. But what happens when your family loses this income source. This could jeopardize the education of your child and hamper their future. In such circumstances, an income protection insurance plan can prove to be of utmost benefit.

    With the help of the life insurance income, your family can pay for your child’s education expenses, ensuring they can become financially independent in the future.

  • Help spouse and parents: Apart from your children, your parents and spouse also depend on you financially for their needs. And with age, their requirements become more and urgent. The medical expenses rise, and, in most cases, ailing parents require long-term care, which is monetarily very demanding.

    If you have a spouse in their old age or ailing parents that rely on you to cover their needs, then insuring your income with an income protection insurance policy is a prudent decision to make. The best part is this cover is appropriate insurance for low-income earners because of its economical and affordable premiums.

 

Undoubtedly, no amount of money can replace your well-being or the role you play for your family. But you can be at peace of mind knowing that if anything were to happen to you, your loved ones will have a reliable life insurance income to help them navigate through the tough times. Moreover, apart from providing income security for your family, an income protection insurance plan from TATA AIA Life Insurance also gives you tax* benefits.

The Tata AIA pay premiums are exempt from taxes* under Section 80C of the Income Tax Act, 1961. Further, the income offered by the income protection insurance policy is exempt from taxes* under Section 10(10D). This means that your family gets a financial shield without having to pay any taxes* on the money they receive from the income plan.

 

L&C/Advt/2021/Sep/1652

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Disclaimer
  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • * Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.