Why everyone should have Life Insurance
Why everyone should have Life Insurance is a question we must often ask as Indian. As Indians, we tend to secure most of the things via a different medium. Before leaving for our offices, we make sure that we have our car keys, wallets, house keys, cell phones with us. We double-check everything before we start the car. Make sure we have turned the lights off and etc. Similarly, when we are at the mall, we put things in the cart that we like and see the expiry dates, check return & refund procedures before paying and only buy the product if we are satisfied with the whole procedure. For us, the safety of other things are really important and I don’t know if I can say the same when it comes to life. In a lot of Indian households, one can see the cars are always insured but the same is not true for health and life insurance.
So, this is an article we are going to talk about why everyone should have Life Insurance? And To understand why everyone should have Life Insurance, we must first know what is Life Insurance?
What is Life Insurance?
It is a contract between the insurance company and the policyholder. The policyholder is supposed to pay the premiums for which he gets the amount in a collected form when the maturity period occurs or when the person dies. It is done to financially secure the loved ones if anything happens to the bread earner of the family.
Here are some more reasons as to why everyone should have Life Insurance?
1. To financially secure the loved ones
The motive of the bread earner of any family is to financially secure the loved ones. When Life insurance comes into the picture, it turns out to be the platform for the bread earner to actually secure the family when it comes to the finances. It is a very important step for making people secure and stable with or without the bread earner. The kind of life we are living we can not really guarantee anything as what might happen next so to provide stability and have stability is very crucial, especially, when it comes to money. To financially secure the loved ones money is indeed a very important thing and will help the family to live a smooth life if anything bad happens to the person who earns.
2. Financial relief
We all know how uncertain life is and we can not underestimate the challenges the life throws at us. It’s almost impossible to escape them so it becomes important to have a financial relief to at least reduce the burden if not necessarily finish it. Financial relief is also important for the times like old age when the person is not able to work much and as to reduce the dependency on the children, this aid is important. It just not helps to deal with the uncertainty but also to cope up with the situations which are unfavourable. Financial relief comes handy when challenges are too much and the support is too less. In tough times like this, every penny counts so one must always think about that.
3. Expression of love
Life insurance is not about the person who earns but for the people who are dependent on him or her. Its never about the bread earner but what he or she lefts behind after him or her. Its an expression of love that you let your loved ones know that you care about them and the life you live is not just centred around one’s own self. It shows that the person is responsible who thinks about the other people of the family as well. It’s very important to get the life insurance done as it provides financial stability to the family if the person who earns is suddenly not there to provide it anymore. It enables a sense of relief to the family as well as the earning member that the future needs of the family would not be compromised for financial reasons
4. Buys time and options
Life Insurance can also be seen as something that buys time and options for the family if the earning member is not there anymore. Sometimes when a person prematurely dies, there are not enough people around to tell you what to do and to help you make the right decision and in times like these when you are emotionally unstable, you often make decisions that are not fruitful in the long term but due to less availability of the options, you are forced to make those decisions. For example, to take up a low paying job and sign a bond for 2 or more years to not leave that job, to get the children to take admission in a school that has fewer fees and less educational value. So, in situations like these Life insurance comes into the picture and help the person buys the time and the options.
Here are more reasons to add in our list of Why everyone should have Life Insurance?
5. Helps in reducing taxes
Life insurance not only helps as financial aid to the family but also helps in reducing taxes. The person who gets the death benefit does not spend the single penny on taxes no matter how big the death benefit is. No other investment does it. Moreover, even if the person is alive, life insurance helps in saving taxes when filling for the taxes at the end of the financial year. And when you inherit the other sources of the income of the person who dies, the person who inherits the wealth has to pay taxes for the wealth that person has acquired, unlike insurance policies that help in reducing taxes. So, Life insurance is anyway very helpful for the person and one should get it done without thinking much as it is a long term thing.
6. Makes retirement smooth
All this while we talked about only if the earning member dies but there is also an equally important thing that happens when a person doesn’t, the life insurance makes retirement smooth. If the life insurance hits its maturity period and the person on whose the name it does not die then he becomes the person who will get the amount when the insurance hits maturity. Thus, keeping the huge amount to him or herself which will ultimately help in the old age or tough times. The saying money saved is money earned goes well here. The insurance indeed makes retirement smooth and stable and the person in the old age does not feel financially insecure or would be dependent on anyone.
7. Peace of mind
The person who has life insurance will ultimately have peace of mind knowing that he and his or her family is prepared for the eventuality. No one really knows what might happen to someone so its better to be prepared. And of course, if you still do not have the life insurance than its better late than never. Get life insurance and earn yourself a reward that comes with it. Peace of mind is a gift and not everyone have the privilege to say that they have it. The sleep is better at night knowing everything is at the place and everyone is prepared if any uncertainty happens. Even though no one wishes for such times but its always a good idea to be prepared for such times.
With this, we have come to the end of the blog Why everyone should have Life Insurance. Well, all that we would like to conclude with is that Life insurance is very important and one must always think about it and get it done for the chaos that life is and the challenges it throws. It’s a crucial step in securing the future of the family is financially stable.
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