Life Insurance- Life After Death

 …….and I lost my bread earner, now how will we survive?

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Ever imagined the situation of the deceased family who has lost their sole bread earner?.

The mental and emotional trauma is such that it feels the world has all ended and they are helpless. Apart from regretting the loss of loved one, they have fear of dark future and survival.

The bread earner has left the world but what next to their family?

Corona has proved that life is very uncertain. Don’t let sudden tragedy uproot your family. Even after you pass, there are still people who rely on you. It is a sad reality that many people need to go through some sort of tragedy or calamity before realizing the importance of buying life insurance. Life Insurance ensures that your family need not extend their hands begging for financial help after your demise. So purchasing a life insurance is utmost important.

Life Insurance- At a glance!

A life insurance is a contract between policy holder and the insurance company, whereby the life insurance company pays specific sum to the insured individual’s family upon his death. For this benefit it takes pennies and guarantees dollars. Buying a life insurance is like fixing a leak in your roof…… the longer you wait, the more expensive it gets.

Lets look at benefits of having Life Insurance:

·        Financial stability for your loved ones even after you are not there

·        Regular Money back payouts in case you have opted for a money back/endowment plan

·        Reduction in tax liability upto Rs 1.5 lacs under section 80C of Income Tax Act, 1961

·        Avail loan against life insurance policy which has savings component (Endowment/ money back plan)

Why life insurance at young age?

On a lighter note- “Sab Mar Jayenge….Sirf Trivedi Bachega”. It is bitter reality that death tolls due to recent corona has even not sparred teenagers. Insure yourself while still young, healthy and without medical conditions as comparatively the premium would also be cheaper and higher life coverage would be obtained.

Purchasing life insurance as soon as you are able to.. is the best time to do so. Many people find reasons to delay in purchasing life insurance, believing that there is always more time to pick up a policy. That time is not always there. A slight delay in purchasing policy, can prove dangerous.

How much life insurance do I need?

This is very subjective and differs from person to person. One must consider taking policy by estimating future family expenses, loan repayments, children education etc. However life insurance experts suggests that should have coverage of 10-15 times of your annual salary. 

Conclusion:

A wise man thinks of the Future, lives in Present and forgets the Past.

The next blog will provide detailed comparision on Term Plan, Moneyback Plan and other plans. Stay Tuned.

Keep sharing, Keep gaining.

 

By CA Dhruval Shah 

You may reach out to me at dhruvalcshah@gmail.com.

Disclaimer: The above blog is for knowledge purpose only. The author will not be responsible for any investment gains or loss, do consult your investment advisor before taking any investment decisions.