Life insurance provides an individual with means to mitigate risks associated with occurrence of adverse events such as death, critical and /or terminal illness. An individual can choose to provide financial security to self and/or his dependents such that there is a benefit provided by the insurer in case of such events in return for premiums paid by the policy owner.
One of the key reasons why one should consider life insurance is to provide financial support and a means to replace lost income for your dependents and family in the event of your death, especially if you are the primary earner for the family. Life insurance can thus be used, amongst other things, to ensure:
• that your family can continue to lead their lives with a lifestyle they are accustomed to;
• your debts are paid off without adding an additional financial burden on your dependents
• key events and requirements of your family such as children’s education and marriage are provided for
While there can be no replacement for the loss of a loved one, with the right life insurance product you can atleast minimise the financial hardships and strife that your family may be exposed to.
Having provided for adequate financial protection for the family, one should also consider savings oriented life insurance products to augment his savings pool with a view to have a disciplined approach to long term savings to meet various life stage requirements.