“What is life if not unpredictable?” is the general truth of us mortals according to all the great philosophers. Raw and painful as it may be but that’s the taste of truth. Acknowledging it will not only make us wiser but also make us practical. Which is a good thing, cause that’s the only way to some hard decisions for our and our family’s well-being. Enter Life Insurance…

Is Life Insurance Policy Necessary?

Life Insurance is only necessary in the following cases:

• Are you single and want to build a secure future for yourself?
• Are you married?
• Are you the only bread-earner in your family?
• Do you have kids?
• Are there people depending upon you, financially?

If the answer to any of the above questions turns up to be ‘yes’ then you must buy a Life Insurance policy.

The term Life Insurance is quite contradictory. In fact, it would be easy to understand if it were named quite the opposite. Can you imagine the predicament your family – parents, wife, partner – will be in if something untoward happened to you? Life Insurance provides cover to your immediate family in case of untimely death. It provides a financial benefit to the dependents in case of any accidental or premature death of the insured.

Covers Expenses:

While you are earning, your income takes care of all the expenses of your home. Electricity bills, phone bills, education fees, EMI’s of your home and vehicles, medical expenses and whatnot. But in the scenario of your sudden, untimely death your loved ones are not only left to deal with the grief but all these expenses too. Life Insurance cover can help protect your loved ones in this scenario.

Helps with Education

Your children are the future. Even in the gravest of circumstances, they will need to educate themselves to open a world of opportunities for themselves. Life Insurance cover can help in providing for your children’s educational expenses.

Covers Mortgage:

Purchasing a home is everyone’s dream. You have been fortunate enough to make this dream come true. Paying EMI’s has never been a problem up until now. What if your loved ones have to face the prospect of losing their home too? Certain Life Insurance policies also cover your mortgages leaving your loved ones with one less problem to handle. In case of your untimely death, they do not have to pay the EMI’s nor do they need to vacant the house.

Helps with Debts:

Certain debts do not waive off even in exceptional circumstances. Personal loans, business debts, credit card bills, etc. have to be paid off by your loved ones as part of your debt. The financial cover from Life Insurance can help ease the monetary crunch that your loved one’s face in such dire circumstances.

Outliving the Life Insurance Policy:

Ok, now let’s assume that you didn’t fall prey to any of the untoward scenarios. You and your loved one’s got the better slice of the pie. But wait, did you? Another worrisome scenario is in case you live long enough that you run out of your accrued savings. At an age when working is a great option, when medical bills are piling and run to the doctors are as frequent as your run to the bathroom, an extra set of helping hands will be a boon. Life insurance helps in achieving this. Certain life insurance policies will return your premium (ROP) in case you outlive your policy.

Tax Savers:

Life Insurance policies are also helpful in saving taxes. Under section 80C of the Income Tax Act 1961, Life Insurance tax benefits can add up to 1,50,000 per annum against the premium paid for the insurance policy. Isn’t it a great way to save tax? Pretty much what we call – “have your cake and eat it too!”

It’s true. One cannot put a number, a value on human life. But it is equally true that prudent investments have never been the reason for anyone’s downfall. While you are taking care of yourself and your family, inculcating healthy eating habits, exercising your body and mind, investing in a good Life Insurance policy is a wise step towards the future.

It is as they say – “Hope for the best and prepare for the worst!”