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Why should I buy life insurance?
Life Insurance provides you and your family with protection against
all the risks involved, moreover providing you an opportunity to grow
your investments. It could be viewed as a long-term investment to
provide for your child’s future expenses or your expenses, post
retirement.
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Why do I need Insurance?
You need insurance for
Family that is financially dependent on you: If you have a family
that is financially dependent on you, then you definitely need to
insure yourself. The most common reason to buy life insurance is it
provide protection to your family incase of any unforeseen events. The
life insurance proceeds can be used to support your family members
with the expenses.
Loans or liabilities: It is very important to insure yourself if you
have taken a loan or mortgaged your assets. It not only provides peace
of mind but also a steady source of income for your family
Compulsory saving-cum-investment: A life insurance policy could be
used as a compulsory saving-cum-investment avenue. Proceeds from the
insurance policy could be used to fund future expenses such as
child’s higher education or retirement funds or even a well-deserved
holiday.
Partner in a firm or Self-employed: It is highly needed by people who
are partners in a firm or have their own proprietor firms. Life
insurance can be a critical component for specialized business
applications - such as funding a buy-sell agreement. The proceeds of a
life insurance policy could be used to provide cash for the purchase
of a deceased owner’s interest in the business or to pay off
business liabilities.
Other than the RBI Bonds, insurance products are the only other
investment products that guarantee yields over a range of time - from
5 years to 25 years. Insurance companies offer single premium
investment products as well as regular investment-cum-insurance
products that guarantee high yields over a period.
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