So, what is keeping him awake at night? Actually, he recently came across an unfortunate incident wherein one of his friends Rajneesh Jain lost life in a car accident. Rajneesh and Abhilesh had similar profiles. The mishap was a massive setback for his family. Rajneesh was running a flourishing business and had a happy family with two kids, both studying in a good school.
It was just 5-6 weeks after Rajneesh’s demise, his family started bearing the brunt of financial crunch. Naturally, Abhilesh was feeling bad. Had Rajneesh been covered under a life insurance plan, things could be very different. Nothing can compensate the loss of a loved one, but life has to go on. No one wants his family to get into financial troubles and live a miserable life, even in his absence.
That explains the significance of life insurance cover.
Just look around. You will find several such stories. Of course, you cannot change the past or predict future. But you can always fulfil your responsibility towards your family by taking care of certain elements. Covering unforeseen risks is an imperative and there is no reason why you should not have sufficient levels of life insurance coverage.
Why do you need life insurance?
You need life insurance not for one reason but many. Life insurance not just provides you guarantee but it also lets you live with ease. Given that your life is exposed to various risks you need life insurance to:
• Fulfil your family’s financial requirements:
Sustenance is impossible without an intact cash resource. Your family is dependent on your income more than you are. You need to keep their present as well as future financial requirements in the view. Your family members need to carry on with their lives even when you are not with them.
Without you their financial sources will cease. So it is your responsibility to arrange for an alternative source of income for them or anything that can make them move on.
• Repay debt:
Loans and debts are an inseparable part of financial planning for most of the people. It gives you an additional source of funds. There is no harm in taking loans. However, you should also be able to pay it back what so ever is the case. If you have taken a loan you should definitely have a life insurance policy also. Having an appropriate life insurance plan will save your family to take the burden of repayment of loan in case you are no more. Calculate how much debt you need to clear and add it to the sum insured of your life insurance policy.
• Get emergency funds:
A life insurance policy can let you avail loan against the amount you have paid as premium. So it is not just for your family but also to fulfil your own needs.
• Avail other benefits
There are many riders available with a life insurance policy. These riders help you to extend the benefits you get from your life insurance plan. Besides death benefit, you can get many more benefits which add value to your plan. Disability benefit, accidental death benefit and dismemberment benefit, critical illness benefit, waiver of premium, accelerated death benefit and the list goes on. The rider you choose is subject to the kind of life insurance plan you choose.
How much does it cost?
Many cannot afford to pay life insurance premium. More cannot afford not to be insured!! If you can afford to pay life insurance - you probably have no need for life Insurance
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