5 Reasons Why Life Insurance is a Must For Life Savers

• Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
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Life insurance is an absolute requirement for everyone. Nobody realises this more than medical professionals since they deal with the realities of life and death on an everyday basis. This is one of the reasons why they opt for some of the best life insurance policies in the market. The most important thing to know about life insurance is that it is primary for the future livelihood of a person’s dependents. Here is a list of five reasons why life insurance is a must for doctors in the country.

• Doctors start earning very late compared to others.

Becoming a doctor is not an easy thing. It is not the kind of profession where you start making money right after college. In most cases, the income of doctors increases only during the later part of their lives. In the meantime, they should have something to protect the financial well being of their families. A life insurance policy is something that can do this for them. A term plan taken at the early twenties can be extremely cost effective for their needs. Moreover, it also provides an adequate coverage to ensure that the family members of the individual are well taken care of in case of his/her untimely demise.

• Doctors have to deal with debts and loans in the early stage of their career.

A doctor originating from a middle income family has to deal with the burden of education loan and other debts. Similar to other individuals, doctors may also have to deal with other debts such as home loans, vehicle loans, etc. Under these circumstance, it is always better to have a life insurance plan that ensures that these debts are resolved in case of the individual’s unexpected death. This will ensure that the financial burden of these loans will not fall on the family members of the doctor.

• Doctors work in hazardous environments too.

The professional life of medical service personnel is very different from that of others. Most of them have to deal with communicable diseases on an everyday basis. In case of a disease outbreak, doctors who treat such diseases will have to come in direct contact with those diseases. Adequate safety facilities are provided by most hospitals. However, the environment is still a hazardous one. A life insurance coverage can offer some level of protection against these hazards. Most importantly, it will provide doctors with a sense of relief about the family’s well being in case of an unforeseen financial loss.

• Doctors have to provide for their dependents’ future.

This is something that every breadwinner of a family has to deal with, and doctors are no exceptions. Doctors have to provide for their family members even after their accidental death. In this world, the monthly expenses involved in running a family are staggering. A life insurance cover will help doctors plan for their family expenses, children’ education, children’s marriage, etc. With adequate coverage, doctors can ensure that their families are well taken care of even after their demise.

• Life insurance is essential for tax and financial planning.

Any financial planning activity should have adequate allocation for life insurance irrespective of the profession you are in. Even doctors have to plan for their retirement and ensure that their financial position remains solid throughout their life. They can use life insurance coverage as investment tools also. Life insurance policies such as ULIPs and endowment policies can work effectively as investment tools. In addition to all this, the money spent on buying life insurance is eligible for tax relief. Even the proceeds that come out life insurance are exempt from tax. Considering all this, doctors can use life insurance effectively for financial planning.

Conclusion

Life insurance is essential for all people irrespective of their profession, age, or gender. It is especially important if there are dependent to provide for even after one’s death. Doctors go through life similar to any other person. The risks of normal life certainly apply to doctors as well. To protect one’s family from the financial liabilities of unexpected death, life insurance coverage is extremely important. With the range of plans available in the market right now, it is not very hard to come across a plan that suits all your needs.