Life insurance is one of the most vital financial tools for an individual because it has so many benefits. It gives you a sense of assurance that your family will be taken care of financially if you pass away unexpectedly. You can also invest in different ways while taking care of your retirement needs with some types of life insurance policies.

Read on to learn more about life insurance types and why they are a good idea:

• Term insurance: Term insurance plans offer affordable life coverage to protect your loved ones. This kind of life insurance is the simplest. Term plans give your loved ones financial security for the future, even if you can’t be there.
• Unit-linked insurance plans: These are also known as ULIPs. They are a type of insurance that combines life insurance with investments. Unit-linked insurance plans give you a lot of options for funds and portfolio strategies. After five years, ULIPs let you take money out of your policy.
• Endowment Plan: Endowments are a type of life savings insurance plan that offer savings and protection simultaneously. They are not tied to the stock market, so they have less risk. So, you protect yourself and your family and build up a fund that will help you get to your financial goals at every stage of your life. Most protection and savings plans give you a fixed amount called the Maturity Benefit when the policy is over. However, some plans also help you create a steady income stream while your policy is in effect.
• Whole Life Insurance Plan: This plan covers you until you reach 99 years of age. They are different from term insurance policies and are helpful when you need to support someone financially for a long time. 
• Retirement and Pension Plan: Retirement insurance gives you ways to build up your pension income. You can either save up for retirement based on your willingness to take risks, or you can invest a lump sum and get an income for life.

Using a life insurance premium calculator can help you determine which life insurance policy fits your needs. The life insurance premium calculator gives a premium estimate based on age, gender, smoking habits, expected life cover, and so on.

What are the benefits of having life insurance?

Having a life insurance policy can help in many ways. Here are a few benefits of life insurance:

1. Peace of Mind/Financial Security: Having life insurance gives you peace of mind. This is because if someone passes away or if something happens to them, they know that their family and loved ones will have money to survive. We all have some financial obligations, but a good life insurance policy makes sure that your debts or loved ones will be taken care of if you pass away.
2. Wealth Creation: Some life insurance plans also allow you to gain returns. In addition to providing life insurance, these policies invest your money in different types of investments to give you better risk-adjusted returns that beat inflation and help your corpus grow.
3. Tax Savings: There are two tax benefits to life insurance plans. Section 80C of the Income Tax Act says that you can get a tax deduction for the premiums you pay. This means that up to 1.5 lakh of the premium you pay each year is taken out of your gross tax, which lowers the amount of tax you have to pay. On their own, the maturity insurance plans may not have to pay taxes at all. Section 10(10D) of the 1961 Income Tax Act gives this tax break. *Tax deductions vary based on the old and new tax regimes. They are subject to change.
4. Buy Young, Save More: If you buy life insurance when you’re young, you can lock in low premium rates. If you purchase the same policy when you are older, your premium will be much higher than if you bought it when you were younger.
5. Death benefit: If the policyholder passes away, the policy’s nominee gets the entire sum assured as long as all the premiums have been paid. The nominee can use the money from the term insurance for any reason, like paying off bills, paying back loans, paying for children’s school fees, or anything else.