DEATH IS CERTAIN ONLY TIMING OF DEATH IS UNCERTAIN
The very reason of our 90% stress today is due to apprehension and
uncertainty about thought of future. Predominantly this uncertainty is finance
related. Life Insurance can be the best solution to tackle future financial
debacle. Unfortunately, despite knowing the importance of having Life Insurance
less than 10% of Indian population are insured. It will have a devastating
consequence for your loved ones if the bread earner dies premature without
securing the financial needs such as child education, marriage, house hold
expenses, loan repayments, medical emergency etc. Sudden untimely deaths during
COVID-19 era has shown the importance of having proper life insurance coverage
to handle future financial emergencies.
What can you do? Simple answer…. buy a Life Insurance policy
immediately. Here the confusions are….
Which policy to buy?
How much money to invest?
How long-life cover is required?
What is the structure of my family?
What are my future needs?
What is my debt/loan?
So many priorities one can have, can be taken care with a proper life
insurance policy. We list down 8 compelling reasons for buying a life insurance
policy.
1. LOOKING AFTER YOUR FAMILY AFTER DEATH :
This is the most important aspect of life insurance that one needs to
consider. Your family should maintain the same life style if not better post
your death. Same amount of money flow to continue to run house hold expenses,
children should not be worried of their educational expenses for today and
tomorrow. Though death is a big emotional loss for the family a properly chosen
life insurance can overcome the financial loss occurred due to death of sole
bread earner.
Caution:
Buy Life Insurance as per your need. Don’t get influenced by other’s
need
2. DEALING WITH DEBT/LOAN:
Now a days we buy almost everything on loan which are getting paid
back in the form of EMIs for coming long years. Think of a situation in my
absence if the entire load of outstanding fall into the shoulder of my loved
ones, will they maintain the same harmony they are in today? Any outstanding
debt in the form of a home loan, personal loan, auto loan, or a loan on credit
cards-will be taken care of if you buy a right life insurance policy.
Caution:
Buy Life Insurance as per your need. Don’t get influenced by other’s
need
3. ACHIEVE LONG-TERM GOALS:
Since life insurance keeps you invested for the long term, it would
help you achieve your long-term goals such as buying a home or car or planning
your retirement. It can also be your children higher education or marriage. To
meet your emergencies in different life stages you can opt for various types of
policies such as Endowment, Money back, Term life. A right Life insurance
policy helps you to protect your life long savings unscathed. On later age
putting money in an annuity plan ensure a pension till death
Some policies are tied to certain investment products that pay
dividends based on their performance. If you are opting for an
investment-linked policy, be sure to read the fine print to be fully aware of
the potential risks and returns.
Caution:
Buy Life Insurance as per your need. Don’t get influenced by other’s
need
4. BUY INSURANCE WHEN YOU’RE YOUNG:
“Let’s enjoy life now …. will take a life Insurance when I will
grow old” it’s a myth now…
If you take a Life Insurance at young age you always pay cheaper
premium with higher benefits such as Sum Assured or Death benefit.
For the same benefits older people need to pay higher premium.
DON’T POSTPONE BUYING, YOU MAY NOT BE QUALIFIED FOR IT LATER: Life is
full of uncertainties. You may be healthy today and thinking that paying a
premium for life insurance becoming an added financial burden. But think of a situation
if you suddenly fall ill or you met with an accident, will you be allowed to
buy a life insurance policy then? Answer is NO. Therefore, it is imperative to
buy one early on in your life.
Caution:
Buy Life Insurance as per your need. Don’t get influenced by other’s
need
5. CALCULATE YOUR HUMAN LIFE VALUE:
How much Insurance to buy?
Every earning person has a value which can be calculated in terms of money.
Talk to your financial planner before buying a Life Insurance to know your
value. Accordingly choose your policy. Else you may land up taking coverage
less or more.
Caution:
Buy Life Insurance as per your need. Don’t get influenced by other’s
need
6. TAX-SAVING PURPOSES: You could save taxes with insurance policies
irrespective of what plan you buy. The premium you pay on an insurance policy
is eligible for a maximum tax benefit of Rs 1.5 lakh under Section 80C, and for
tax-free proceeds on death/maturity under Section 10 (D) of the Income Tax Act,
1961.
Caution:
Buy Life Insurance as per your need. Don’t get influenced by other’s
need
7. A TOOL FOR FORCED SAVINGS:
Life Insurance is an instrument with long term liquidity. You are
compelled to pay for full term to get a handsome return. So, life insurance
brings down your unnecessary impulsive expenses.
Caution:
Buy Life Insurance as per your need. Don’t get influenced by other’s
need
8. PEACE OF MIND:
Death is unavoidable. In the face of tragedy, the least you can do for
your family is to secure their financial future. Even if it is a small policy,
you know that you’ve done all you can to help them tide over difficult times.
As expert says “Life insurance is a great tool for both
protection as well as helping a consumer save in a disciplined manner, which
leads to creation of a good corpus. The need for life insurance changes at
different stages of your lifecycle depending on the financial obligations and
dependencies.”
Caution:
Buy Life Insurance as per your need. Don’t get influenced by other’s
need
