Four Pillars of Life Insurance policy

Indian consumer is smart and knows how to fulfil its responsibilities towards the family with or without his or her presence in their life. They are self esteemed people who believe in hardwork and building the necessary savings for their family’s secured future.

Life insurance policy is one such investment tool that will help you meet all the requirements of your family in your absence. However, many people seem allergic to this wonderful investment tool. They buy life insurance right after they get married or have their first child and don't give it another thought until their policies are set to expire. The most common mistakes that people make is that they think their life is set, with all things in place, health regime, good lifestyle etc. and their lives aren’t going to change and so they plan for a short time horizon on the insurance front.

But have you ever realised that in the effortsof raising kids and clearing off the mortgages you need higher levels of coverage. So if you delay the process and turn old you might lose the insurability because you no longer are healthy or you can only get the coverage at higher premium payments.

Therefore, it is important for you to buy adequate life insurance policy at the right age. This will help you get sufficient coverage for your family beating the odds of inflation and being purchased at cost effective rate.

Below are the four important reasons you need to buy life insurance and they are as follows:

Cover Children’s Expenses

Like most parents you want to be sure that your kids are well taken care of and can afford a quality college education. An adequate coverage will take care of their education expense and help them live a good and secured life ahead. 

Pay off Debts

In addition to providing income to cover everyday living expenses, the family would need insurance to cover debts like the mortgage or loan settlements so they don’t have to sell the house to stay solvent.

Replace the Income

When the primary source of breadwinner perishes it becomes important to have a regular source of income to maintain the same lifestyle atleast till the time the kids grow up and then start earning to take care of the further needs.

Estate Taxes

Estate taxes can be steep, so having insurance in place to pay them is essential to avoid jeopardizing assets or funds built for retirement. Use of life insurance for this purpose is most common in large estates, and uses permanent insurance to ensure that coverage remains until the end of life.

Thus, life insurances are products designed to bridge up the financial requirement of your family if you had to meet any unfortunate incidences. This is the best precaution one can take to ensure uninterrupted income source during the time when a person is disabled, retires from work or human life is lost. Although life cannot be weighed in terms of money, but still we all accumulate some savings to support our beneficiaries in our absence in the form of regular source of income.