Peace of Mind comes with knowing that your family is secured financially.

Review your life insurance cover

First, let us be clear about “Which” type of life insurance we are talking about. the one discussed here is NOT about SAVINGS but only about “Financial Protection in the event of death”.

So, we are NOT talking about plans which gives a maturity benefit.

So, please be rest assured that, I am not trying to “Sell” you some popular insurance plan like its normally done.
I would rather like to bring about an awareness on “Risk Protection”.

The subject is about “Term insurance cover”. This type of insurance covers the risk of death, period. It pays a lump sum ( Sum assured) when death happens even till age 100.

Why should one know more about this “Pure insurance cover“?

1. There is a risk of death before one’s old age due to health or accident. When an untimely death happens, it creates financial stress along with emotional stress. 

Your spouse and children might face the below situations.

{ Life insurance helps to ease out of the financial stress}

2. Assets may not be liquidated quickly to get money

{ LI money helps until the assets are liquidated. there is no pressure to sell quickly which might get lower price}

3. Income might stop

{ LI money helps as a corpus and interest can be an income stream}

4. Business may have to be closed.

{ LI money helps until such time the business is closed and realization of money come through}

5. Term loans, house loans, vehicle loans, OD etc must be closed.

{ LI money can be used to close loans}

6. Children future education and marriage expenses.

{Children future remains unaffected as dedicated corpus out the LI money can be deposited towards their future expenses}

7. Surviving partner will have difficulty in financially settling your share to your family.

{A term insurance taken under “Partnership insurance” will create a corpus to settle the share of the deceased partner’s portion to the family}

8. Property & business valuation related disputes may arise.

{ LI money ensures that the family is not financially affected during a difficult phase. A buy-sell agreement and a WILL along with adequate LI can solve most problems}

9. Spouse and children become dependent.

{ spouse & children are financially independent through LI}

10. Lifestyle of your family changes overnight.

{ LI gives your family a chance to maintain their lifestyle and dignity}

In order to avoid any or all of the above financial problems, one needs to buy a “Term insurance” which is equal to cover the above mentioned financial aspects.

For Ex., If you are a business owner, then you can look at 5 times the net profit + outstanding loans of your business, as a minimum cover.

If you are a salaried person, then you may look at 10 year annual salary + any outstanding loans as a coverage amount.

This type of “Term insurance ” plan is much cheaper in premium. So, the expense you incur is negligible compared to the “Risk protection” it offers to your family.

The important point to note here is that, this type of policy can only be taken if your health is fine and free from diabetes, heart problems or any other illnesses.

The irony is when people realize that they need this cover to protect their family, they may not get it.

So, the earlier in life when all your health parameters are fine, you must take a good sum of this cover for the longest possible period.

I can help you to calculate your life insurance coverage requirement through a scientific process called “human capital valuation “.

 

Based on your nature of your occupation such as Salaried employee or Business Owner (Sole proprietor, Partner, Director), specific term insurance plan can be selected and set up.

 

Kindly feel free to take my help in this regard. Buy today and have a peace of mind.

The views expressed are the individual opinion of the author and readers are requested to take decisions based on their own judgments and seek expert advice. The author does not hold any responsibility for decisions taken by readers.

Pin It on Pinterest