I Never Knew The Importance Of Life Insurance Until This Happened

‘Planning works where luck fails’-seems true in one’s real life. Since one cannot depend on his/her luck always, it is necessary to make plans. If one has a spouse, child or a parent dependent on them,  buying a life insurance is a good idea. Not because he/she is going to die but his/her loved ones are going to live.

My father died when I was 10 years old. The whole family was in a great state of shock and depression. The accelerating expenses and lack of insurance adversely affected our lives.Me and my brother’s education (who was 6 years old at that time) was almost off the track. Somehow with some external support my mother managed some funds for completing our education.

Years passed and I joined college. I was good in studies and determined for my career from school time only. I wanted to become a Doctor. I was admitted in the MBBS Course. I also managed to get  a part time job in a call center to give some monetary support to my mother and brother. Jaya and I met in the college first time. We share the same set of values, habits and nature. Soon we became very good friends.

Our life had taken a new platform and was running smoothly. But it  was a pleasant  afternoon when I received a phone call from Jaya that her  father had died. Jaya is survived by her two siblings and her aged mother.  Soon,due to the sudden demise of her uninsured father, Jaya was forced to leave her college. She had to give up her dreams for the sake of her younger siblings.

I was quite upset with all that what happened with Jaya and i could not do anything for her.Suddenly harsh thoughts started coming across my mind.

• what would happen if same thing happens to me tomorrow?
• How will my family survive?
• How will my brother continue his studies

I kept thinking  about the consequences throughout the day and numerous sleepless nights. I was in a continuous search for a suitable means to secure my family.  One Sunday morning, I came to know about  term insurance plans, thanks to a close relative. Being aware about the ill practices undertaken today by insurance companies I immediately thought to google what actually is a term plan and how this can be useful to me.

Term Life Insurance

“Term life insurance plans” are one way to support your family in your absence. This is a pure risk policy. The insurance premium is lowest for such policies, because there is no savings component in the policy.  That is. at the end of the insurance period, if no claim has been made, nothing can be recovered from the policy. The low cost helps enable taking insurance to the level required to protect the goals and needs of the individual.  During the period of insurance, in the event of death of the insured, the sum assured will be paid to the beneficiaries.

Highlights of term insurance plans

• Upon the death of the insured before the end of the policy term, the death sum  will be paid as the death benefit to the beneficiary
• The insured will bear affordable premium rates for the chosen coverage period. The frequency to pay the premiums (monthly, quarterly or annually) depends on what the insured has opted for .
• Excellent tax benefits are available as per the provisons and conditions of most income tax laws
• There are single life and joint life term plans. In joint term plans , the insured and his/her spouse are covered and in case of death of either, the death sum assured will be paid to the surviving member. In case of the sudden death of the couple , the entire amount assured will be paid to the beneficiary mentioned.
• There may be plan options which allow for return of all premiums paid,in case the insured survives till the the end of coverage
• Various Life Insurance companies have the term insurance plans that offer tailor made coverage options, freedom to chose benefits, flexibility to increase life coverage pertaining to your requirement,  lifestyle and needs, thereby giving you the opportunity to have customized term insurance plan just for you.

After learning in depth about term insurance,  I felt satisfied and worry free that now, even if something happens to me tomorrow , my family will not be forced to give up their dreams as Jaya’s family did. I will even suggest Jaya to start earning as soon as possible and take a policy on her life also to support her family.