Life Insurance Plans: Offering Protection Against Death

Life is precious, more so because nobody knows when we are going to lose it! We may be enjoying time with our family one moment but may not be there the very next moment. This uncertainty throws up a vital question, what will happen to our family, our loved ones, after we are gone? Will they be able to live comfortably or will they struggle to carry on a normal life? It is to resolve such worries that one should always consider life insurance plans to secure the financial future of their family after their demise. 

The Amount Depends on Your Needs

While insurance cannot help replace your love for your family, it can certainly ensure that they do not have to suffer financially. However, it is important to remember that the monetary amount or sum assured will vary for different people, according to their age and responsibilities, and no single plan is perfect for everyone. 

The amount that you choose a policy for will depend on the current standard of living and the level desired for the family after your death. This requires consideration of the amount of assets you have and the sources of income available to your family in case of your untimely demise. Sources like cash in the bank or provident fund money may not be adequate to meet all the funding needs like education and marriage of your children, besides their day to day expenses. This gap between the available resources and the amount of funding required by your family after your death can be easily filled if you base your policy purchase decisions on careful thought. 

In India, life insurance plans can:

• Help your family survive a sudden loss of income
• Allow them to fund crucial goals, like college education or marriage expenses
• Live a normal life, without having to worry about funding the varied expenses

While deciding the amount to be bought, do remember to take into account not only your current income but also potential future income, goals for your children and family, and any other costs or liabilities that may come up in the future.

Knowing that the future of your family is secure even when you are no longer there to take care of them can give great peace of mind, besides allowing a person to enjoy life in the present. However just buying a policy is not enough. You should re-evaluate the financial needs of your family from time to time, especially at the time of major life events like marriage, the birth of a child, the purchase of a major item like a house, etc. This will help you decide whether you need to take additional policies or not. 

The good news is that with growing competition in the insurance sector in India, life insurance plans are as varied as the needs of the people in the country.