Do I Need Life Insurance?

Asking yourself if you really need life insurance is a valid question. You shall be paying the insurance premiums for a long policy tenure, so you are bound to analyse this decision. But if you can leave a monetary backup for your family with the help of insurance, isn’t it worth the effort? Let’s explore the need of buying one and the benefits of life insurance.

Why Should You Purchase Insurance?

In today’s day and age, being financially independent is of utmost importance. Losing the breadwinner of the family or having to rely on emergency savings can be quite detrimental. Even if your spouse has a full-time job, taking care of other expenses such as debts, medical care, retirement planning, children’s education, etc. can be too much. To avoid such a situation, purchasing a life insurance plan can be the best option. You can buy high insurance coverage to financially support your loved ones and ensure they have more than enough. By choosing the right life insurance, you can have peace of mind, knowing your family is taken care of. But how exactly?

Financial Security

Today, you and your family may have access to all luxuries in the world. But what happens in your absence? The sudden loss of your income can hamper the financial health of your loved ones and leave them helpless. Life insurance acts as an emergency fund in the event of an unfortunate mishap. Such an emergency fund takes care of all their monetary needs and accounts for inflation. The lump-sum benefit received from the policy can be used however, they see fit. But to make sure they have sufficient funds in the time of need depends on the sum assured you pick. The right coverage shall safeguard your loved ones when you aren’t around to financially contribute to the family.

Other Benefits of Life Insurance

Here are some common benefits of getting a life insurance policy:

• Secures debts

We all tend to create debts over time as our responsibilities increase. It could be for a home, marriage, business purposes, or others. However, leaving such a burden on the shoulders of your family could disrupt their finances. Thus, the insurance payout can be directed towards clearing any debts for a secure future.

• Offers wealth creation option

What if you survive the policy tenure? As a policyholder who has been paying the premiums for a long time, you would like to get some returns in case you outlive the plan. For this, you can opt for life cover plus savings or investment component policies. These can go a long way in creating wealth and fulfilling your life goals.

• Safeguards other risks

Many individuals get diagnosed with a critical illness during their life. Some end up losing their precious jobs, becoming unemployed without much help. What if you could have a backup against such risks? With rider benefits, you can! Add-on covers can be included into your policy at a nominal rate to protect your family from such untoward incidents. The benefits available under the rider go over and above the perks of your policy.

Who Should Opt for Life Insurance?

Life insurance policies are suitable for every kind of individual but there are some key categories of people who should purchase the plan.

• Individuals with dependents

One of the common reasons for getting insurance is to financially protect your dependents in case of income loss. These dependents could be your parents, spouse, children, etc. who would require monetary backup in your absence.

• Individuals with high debts

You could have taken a high personal loan or home loan as your spouse as the co-signer. Leaving such a huge debt will negatively impact the finances of your family. Thus, you can pick a suitable sum assured that shall cover your debts.

• Individuals who want to leave a legacy

Having additional funds never hurt anyone. So, if you are one of those people who want to leave a lump sum amount for your loved ones, then insurance is your best bet.

With this, you must have understood what is life insurance and if you really need to buy one. Based on your requirements, you can select from various types of life insurance policies that fulfil your goals. But make sure to get sufficient life cover to secure your family.