Life insurance is essential for everyone
February 28, 2008
Planned properly, life insurance can also provide for the unusual needs like higher education of children or their marriages.
Life Insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) either in case of a death of the person insured or after completing the maturity period of the policy. We must accept that all of us, in different walks of life have many needs to meet, families to be taken care of and dreams to be fulfilled. It is possible that we may be able to fulfil our responsibilities towards these during our lifetime.
But will our families be able to maintain a manageable standard of living in our absence? To ensure that a financial protection plan through life insurance comes handy.
Planned properly, life insurance can also provide for the unusual needs like higher education of children or their marriages. The add on benefits (riders) that come with life insurance at a little extra cost, can also take care, to some extent, of the loss of income due to disability or pay for the medical expenses in case of critical illness and can generate higher benefits in case the person assured dies in an accident. Besides, through life insurance one can also plan for regular income after retirement.
Not expensive
It is wrong to believe that one needs to spend a fortune in premiums to get a good insurance cover. Here is a simple example of the value of the insurance cover one needs to take and how much premium one has to pay: Here is a 30 year old person, drawing a gross salary of Rs 6 lakh per annum (Rs 50,000 per month), and has a family of four (wife who does not work and two kids). His monthly household expenses is around Rs 20,000. If this person meets an untimely death, his family will still need Rs 20,000 a month to meet the expenses.
Source : http://www.deccanherald.com/
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