Life insurance has a particular purpose. It provides financial protection to a person's family from untimely death. In India, people still feel hesitant about life insurance. There is a lack of awareness about this. Today, a large number of people do not have life insurance. Not having enough coverage is also a problem. The big question is, what is the usefulness of life insurance, how much money should it be, and when should it be taken?
You have to ask yourself to get answers to these questions. The question is, what is your responsibility towards the family as an earning person? Often a person has a variety of duties. They want to send their children abroad for higher education. They have to raise money for their daughter's marriage. If they have a home loan, they want to repay it in two or three years. Want to make a source of regular income for retirement. Time and situation are both uncertain. God forbid that there should be a decrease in the untoward of anyone before fulfilling these responsibilities. What will happen to these goals in case of unfortunate? Where will the money come from? The only option is life insurance. This can give a security net to all your financial goals. It protects the self-esteem of the family. They don't have to be dependent on others after the breadwinner of the family.
This requires accurate information about current monthly expenses and future financial goals. Adequate life insurance must be equal to our current and future responsibilities. Home loans can also be considered as a person's liability. In simple language, the sum assured should be 16 to 22 times the annual income. Life insurance is a reasonable time when a person is not responsible for any kind of responsibility. This means that life insurance is as good as it is taken. With aging, the premium increases due to the mortality factor. Also, increasing health hazards can make it challenging to get the right life insurance. A term plan is always a better option for life insurance. Under the term plan, a large sum assured, i.e., security cover, can be taken by paying a lower premium. With the help of this, life can be lived with the economic security of the year.
Image credit: forbes