Amit understood the meaning of life Insurance when his colleague Ajay died in office. Ajay met with a sudden heart attack and was declared dead when brought to the hospital. Even though Ajay was earning Rs 65,000 a month, he had only one life Insurance policy with life cover of Rs 5 Lakhs only!
Amit could feel that the small amount of Rs 5 Lakhs was a paltry sum for Ajay’s family and insufficient to meet daily expenses and education of his two kids. Ajay’s story is very common in our society as people underestimate the importance of life insurance in India. Most people take policies based on the premium amounts – they must start by assessing the need of the life insurance plan and future financial objectives.
You will be shocked to know that only 3.30% of India’s population is covered under a life insurance plan. This life insurance coverage percentage is abysmally low for a country with a high population as India.
The need for life insurance plans – How they work
If you buy a life insurance policy, the insurance company promises to pay you an amount equivalent to the life risk cover you have taken on the event of your unfortunate death. The life insurance coverage in India is calculated basis your age, income, city of residence, nature of employment, etc. The company would be liable to pay the above amount to your nominee. In return of this promise, you are required to pay a fixed premium to the company during the entire policy term or till the premium paying term chosen.
Ajay’s incidence must have made you realise the need for life insurance plans in India. In a nutshell, life insurance is a must for protecting the financial future of your family.
A life insurance policy promises to pay a lump sum benefit to the extent of sum assured + accrued benefits, if any (as per policy terms), in case of sudden death. This helps the family overcome the financial crisis which arises due to the death of the sole bread earner. While the emotional loss is irreplaceable, the financial loss is compensated by the life insurance company. Thus, a life insurance policy provides financial protection to the family when it is needed the most. This is why your motto should be ‘Sabse pehle life insurance’ when planning your financial roadmap for the future.
The need for life insurance plans: How much life insurance do I need in India?
Within life insurance, there are various plans tailored to meet life goals. Whether you are planning for your child’s higher education, your retirement, wealth creation or protecting your home or personal loan, there is always a life insurance plan tailor-made to meet these goals. Life insurance plays a big role in financial planning as it ensures the future financial goals of the family are met even if the sole bread earner of the family is not around due to his or her sudden demise.
Through term insurance plans you can take a high life cover by paying a small premium.
If you have dependents or financial liabilities, then it is prudent to get life insurance and a term plan is the cheapest variety of life insurance policy available in the market
Amit overlooked the importance of a term plan but you should take complete responsibility for your family with Edelweiss Tokio life Zindagi Plus without any delay.
This will surely give you a sigh of contentment when you are alive and even when you are gone making it a must rather than a choice.