The Consequences of Not Buying a Life Insurance Policy

Yesterday, Tanay’s friend Rohan asked him, “What if I die suddenly?”

“Just shut up,” Tanay said.

“No, seriously, I’m serious.”

“Tell me, what possibly could go wrong or be the worst outcome?” he asked.

Rohan said, “Did you hear the news about a chartered plan crashing in Mumbai’s Ghatkopar suburbs on 28th June 2018?”

Tanay said, “YES”

Rohan asked, “Did the two Pilots and two aircraft maintenance engineers knew they were flying for the last time? Did the pedestrian who had walked out know this was the last day of his life? Did the occupants of that chartered plan knew they would crashing within 3 km of the runway?”

“No, of course. Nobody can stop these accidents to happen but one can surely secure one’s family from the consequences of these types of mishappenings, Tanay answered.

Life Insurance is the only way of protecting the future of your loved ones in your absence. In the absence of a Life Insurance cover, many problems can arise for you and your family like:

1. You leaving your family in the financial crisis

   You buy life insurance to let your loved ones know that you care about them. To let them know, even when for some unfortunate reason you wouldn’t be there with them physically and to support them emotionally, but financially things will be taken care of.

   Unwanted and unfortunate incidents like a road accident, train derailment, stampede, tsunami, earthquake, floods, plane crash, life-threatening diseases or terminal illness etc., are unpredictable especially in metro cities like Mumbai, Delhi, Chennai, Hyderabad, etc. With the help of a life insurance plan, for instance, a term plan, you can ensure your family doesn’t have to go through the financial crunch.

2. Leaving your family in a debt trap

   You may have opted for a car loan, personal loan, home loan, or a business loan. Or perhaps, might be thinking on the same line to fulfill your goals and dreams. Do not forget – the debt doesn’t go away with your life. With the right type of life insurance plan, such outstanding loans can be paid off.

   Moreover, many Insurance companies do offer loan insurance policies as well. This means you can ensure the loan amount opted for. These plans could be the savior for your loved ones in case of your untimely demise.

3. The possibility of not letting your child live his dream

   Long live your children and their dreams. But to make sure your child’s dream doesn’t remain just a dream, you have to make financial arrangements to turn those dreams into a reality.

   You are very well aware; the cost of educating a kid has skyrocketed. With the help of proper investment in ULIP like Edelweiss Tokio Wealth Plus, you can create wealth with a rising star benefit for your child. It helps in building funds for your child’s education, more importantly; it will take care of your child’s financial needs when you are not around.

4. You will be a person with a missed opportunity

   Let me disclose something about life insurance plan, which you may not know. All the premiums you pay towards any type of a life insurance policy are tax deductible from taxation, as per the Section 80C of the Income Tax Act, 1961. However, the maximum tax benefit one can enjoy is of Rs.1.5 lakh per year. Moreover, the maturity benefit and the death benefit under any life insurance are non-taxable under section 10 (10D).

   There are a plethora of life insurance products like – a Term plan, a ULIP, an Endowment plan, and a Pension plan.

   Tanay told Rohan my friend, just opt for life insurance’.

   You can assess your requirements. And learn about various types of life insurance plans. Then, as per your needs, select the most suitable life insurance policy to secure your family because family comes first