The Importance Of Having Tailor-Made Life Insurance To Protect Your Family

by Pam on November 15, 2017

Do I really need life Insurance?

No. I don’t need it because…

…I have a corporate health insurance plan.

…I do not have any mortgages.

…I do not have any kids or my kids are not living with me.

…My kids are grown-up and they are not living with me anymore.

…I cannot afford it.

I’m sure these all sound similar to you.

These are among the most common reasons that we often hear, while asking people whether they have an insurance plan or why they haven’t bought the life insurance coverage they need.

LIC of India and other such corporations offer a wide range of life insurance plans that cater to your need.

Let’s glance at the importance of having a life insurance to protect your family.

I’m covered under my office plan:

The aforementioned is one very common reason why people think that they should not buy life insurance. But having a family makes you think twice. You would obviously want to secure your family’s future financially, and leave a wealthy legacy behind for your loved ones; a policy through your office might not be enough.

Did You Know?

The average sum of coverage offered via an insurance cover by your employer is equal to your annual salary.

Think about it. Would your yearly salary be sufficient to give your family a secure financial future for the years to come? Probably not!

Did you know?

The average individual stays at the same job for approximately 4 years or less.

Have you ever thought about what happens to that coverage if you are laid off, or switch jobs, or the company shuts down? Let us answer that for you. It most probably won’t be available. You don’t even get a guarantee that your new job or new company will offer you the insurance coverage provided by your prior organization.

I do not have any mortgages:

So, you do not have any mortgages to pay, Bravo! That’s great news! Whether you have paid-off your mortgages, or you rent a home, you still have many other living expenses that you need to pay, right? Things like electricity, groceries, transportation costs and internet services can all add up quickly.

Did you know?

7 out of 10 families are dependent on two incomes, where both the spouses are bread-winners of the family.

If your job is terminated, would your family and dependents be able to pay monthly bills or fulfil their needs and requirements?

I do not have any kids or my kids are not living with me:

Just because you don’t have kids and you don’t have to worry about their education, marriage etc, doesn’t mean you stop worrying about yourself and your better-half! What about your financial security and future?

Did you know?

The average budget of the medical cost for an old couple of 65-years of age over a 20-year time span is Rs. 1 lakh.

Do you think you will have enough funds to cover any of your unexpected medical expenses after your retirement? Just for this, buying an insurance plan would prove to be one of the wisest decisions of your life.

My kids are grown-up and they are not living with me anymore:

Are you not responsible for anything else? Of course, you never know what’s coming to you in the near future. Even if your children are grown-up and you no longer have to worry about their future but you have your future to worry about. Think of a financially secure future with your spouse.

Did you know?

There has been a decline in the number of nuclear families in India in the last decade. Despite this, there are many children who don’t stay with their parents.

You are so engrossed in your day-to-day activities that you don’t get time to think about your post-retirement plans. You need to have an excellent plan to have a financially independent retirement living.

I cannot afford it:

This one is a big reason. Many people are not good at estimating their expenses and end up over-estimating the cost of life insurance coverage. But the good news is that it is probably not as expensive as you think!

Did you know?

Individuals who have no insurance often over-estimate how much it costs by around 3 times.

If you have not evaluated a policy, this might be the right time to price one out! Life insurance policies are flexible. A good agent will assist you in building a policy that suits both your budget and lifestyle. And with the changes in your life, you can make adjustments to your plans to fit your requirements.

As if that’s not enough!

You should be aware of your financial responsibilities at each lap of your career. While kicking-off with your career, you must buy a life insurance plan depending on your medium-term obligations towards members of your family including your parents. Post marriage, you must re-assess the need for insurance and add to your insurance coverage by taking the financial needs of your spouse into consideration.

In the same way, when you have kids, you must also take into consideration the present and future requirements of your kids such as their future career, education, marriage, and so on. Keep this in mind and plan to increase your life insurance coverage accordingly. When you review the size of your insurance coverage, always consider all the regular expenses, investment instalments, the expected inflation and debts down the line.

One Final Note

As we know life can be unpredictable and this is the reason we don’t have any idea what might befall us. Inadequate pension schemes, your dependent family, and unexpected illnesses are just a few factors. Hence, you must have a life insurance plan to protect your family.

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