Rahul met his friend Amit while commuting on a Metro railway.
They met after a long time. Almost, after 6 years of graduation. They had a long conversation and in between their conversation related to whereabouts and how life is, Amit mentioned something that made Rahul think about things he never thought. And probably, you too, wouldn’t have thought about this.
“One of our classmates, with whom he was in touch with, passed away recently in an accident. He had taken a student loan from a bank where his parents were the co-borrowers. Apart from the emotional strain of losing a young kid before their eyes, his parents had to also bear hole in their pockets because of the student loan, which they were equally responsible to pay back.”
Rahul was shocked while listening to him. And the only question that was constantly bombarding in his mind was that how his parents will manage to repay the huge amount when they themselves are not financially strong and that too, at such an old age, when it’s time to retire? At this juncture, you have to think about a life insurance. And there are more reasons as well.
The interest rate in India on a student loan is approximately high. Yet, the point is, to know that the interest rate is quite high enough to repay without having a strong source of income or enormous disposal wealth. If such unfortunate events shouldn’t happen there is no escape. The best way is to prepare and take care of all the emergencies so that your loved ones do not have to undergo any financial hardships and the entire load with the repayment of your student loan.
When you are in a partnership business: Usually, to start and run the business, people take a loan. And if you are a business owner or have started your own start-up, running a small business with partners, the business may doom with your passing away. To ensure, the business sustains and the business partners don’t suffer, you must make former arrangements. As in any business, it’s a teamwork, and each one is depended on the other, even in the matters of finances. The least you can do is buy a term life insurance policy with a sum assured of that amount.
If you have dependents that you support financially and you are the only one who is taking take of your parents then you certainly need term insurance. A life insurance policy would give the required funds to meet their needs when you are not around. You can avoid this by providing a financial shield with a term life insurance policy. A term plan helps your family with the replacement of the loss of the income.
With marriage comes more responsibility. You start planning your family as well as finances at that moment only. With a partner and child who are dependent on you, you must take measures. As you know, raising a child is not a simple task. It also requires a good amount of money. A life insurance policy is a good way to start with.
When calculating the premium all life insurance companies take health and risk of death into consideration. At a younger age, you are healthy and fit and the risk of death is also far lower than at the older age. And for that, life insurance plans are available at a lower premium.
Moreover, the best part is, all the premiums paid towards the plan to keep it in force are eligible for tax deduction under Section 80 (C) and the payouts are also tax exempted under Section 10(10D). So, protect your family, TODAY! Don’t delay.