"Health is wealth" and thus, you must have a life insurances in place to protect it. This goes without saying for people who are breadwinners of their family. They should never take their health for granted, and must secure it using a good life insurance. Why? Because the longer you live, the longer you’ll be able to serve your family, pay for their needs.

That said, insurance policies are of two types: (1) Life Insurance and (2) General Insurance. Both the types of insurance policies have the same purpose but provide financial cover for different things. For instance, General insurance insures non-living assets such as house, car etc. However, life insurance covers individuals.

To understand it better, let’s understand the difference between life insurance and general insurance.

Benefits of Life Insurance:-

  1. A life increases the value of your life. It covers your family financially in case any untimely and unfortunate mishap making you incapable of meeting their financial needs any further, may be due to critical injuries or death.

  1. The life insurance will pay off the liabilities such as home loan, car loan etc. in case of your death, sparing your family from shouldering these obligations on your behalf.

  1. Lastly, as long as you keep paying the premium of a life insurance you have on your name, you’ll be able to claim tax rebate from your annual income under section 80C every year. The max amount you can claim as tax rebate is Rs 1.5 lakh. As well as insurance plans there are several Small Saving Schemes in India that can help you to claim tax.

A little about General Insurance

By subscribing to a general insurance policy, you can protect the non-living assets. However, select a policy wisely based on the type of asset. For instance, home insurance for home and so on. In addition, the theft insurance and fire/flood insurance coverage is a must for the homeowners.