Major Consequences For Not Having A Life Insurance
Most people in India perceive life insurance to be just a contract that benefits only the insurance company and its agents. Many people seem to be allergic to it when financial experts reach out to them and discuss it. Because of this perception about life insurance, many go about their day and their lives, not even bothering to check it out, let alone get one. However, this should not be the case. Every working adult should get one most, mainly when their family depends on their salary. If you look at India’s demographics, only 10% of the population is covered under life insurance. The 90% are probably people who couldn’t decide to have resolved never to get one.
Let us present to you why you should think it over and get one:
LEAVING YOUR FAMILY IN A FINANCIAL CRISIS
When the unexpected happens, and you are taken out of the picture, bills have to be paid for the unexpected expenses incurred. Expenses like your funeral and other costs related to your demise. The question is, who pays for it? Because if you haven’t prepared for it, you will leave your family a financial crisis, an added burden to bear besides the fact of losing you. So maybe you’re okay about not having life insurance, but when you’re gone, it’s something that your family will have to bear unfortunately and sorrowfully.
If you are the breadwinner of your family, the best option for you is to get a term insurance plan. In that way, you get to be there for them even after you’re gone at a minimum premium.
LEAVING YOUR FAMILY TRAPPED IN DEBT
Leaving your family in a financial crisis is one thing, but leaving them trapped in debt is another and graver. So if you know that your family will have a hard time handling your obligations, it’s best to make the necessary arrangements already. If you presently have any outstanding loan, with the right insurance plan, you can have it covered as well. In that way, your family will not have to worry about it when the unexpected happens. Many insurance companies can offer you loan insurance policies like AXA. Sometimes, all it takes to act is the question of how much do you love your family?
BEING UNPREPARED FOR BIG-TICKET EXPENSES
There comes a time in our lives where we’ll be pushed to welcome changes. Being prepared for it will not only lessen the tension but will also set you in life unfazed with what’s to come. An example of these times is when you transition from employment to business. Doing so will not only result in a significant gap in earning but may also be challenged by time. Another circumstance is getting married or subjecting yourself to a sabbatical leave with further studies. These moments are changes we welcome in life, and because we don’t earn much in these times, back-up money is needed. Investment of your hard-earned money will save you a lot.
LEAVING YOUR CHILD’S FUTURE INSECURE
If you are a parent and haven’t placed an investment yet on your child’s future, it might rob your child of the bright future you can give him or her. Because of globalization, India’s quality of education improved a lot. However, it has also increased the cost of education in the country. That is why preparation for it early is ideal. Spending for our children’s education should be a sweat as it is something expected and anticipated already, hence it is something you should be prepared for. A child plan is one of the types of life insurance policies. It covers all the financial needs of your child, especially when you are not around.
BEING FINANCIALLY DEPENDENT ON OTHERS IN OLD AGE
While most people worry more about losing their life or die prematurely, it should also be standard to think about outliving your prime years. Some people think about retirement like a dream. Sadly, with government assistance, you can only have so much. A lot of retirees are unable to maintain the lifestyle they used to have when they were working. Good news for those who are not yet in their retiring years, you can start to prepare for it. Your preparation should be based on how you want your retirement to look like. Give yourself some credit and some loving by going big on your preparations. After all, retirement is your most prolonged vacation ever.
Based on Materials from Entrepreneur India