An Economic Survey released by the Ministry of Finance earlier this year (Jan 2022) revealed that in India, only 3 people out of 100 have a life insurance policy. Not alarming? Well, it ought to be. For all the economic instability and uncertainties going around us, we sure seem to be a nation that is very positive in our outlook.  The last two years and the pandemic, as well as its aftershocks, have taught us that anything is possible. We used to take everything for granted – going out, public transport, eating at a restaurant, travelling, meeting friends and family, attending school/college/day-care, working out of offices and more.
 

Come 2020, the world as we knew it changed. All the things I mentioned above were impacted, and we lived inside our homes for a long while. We also lost people close to us to the pandemic, and we couldn’t even bid them adieu due to restrictions. Even if we did not have a personal loss, we have seen many people around us go through trying times.  Are you too young to be worried about this? Not really! Well, again, COVID-19 taught us that age was just a number, and when life throws you tough times, age does not help!  What happens to you/ your loved ones if tragedy strikes? And such trying situations arise?
 

Financial loss can lead to multiple issues when someone is grieving the loss of a loved one. The best way to protect yourself is to ensure that you are adequately covered and secure the future of the people who outlive you.  Why should I?  You are living it up and earning well and are extremely comfortable in your life. So are most of us. We hope you and I will continue to live happily like this for a long time to come.  However, irrespective of how much you are currently earning, we have learnt these last few years that no one knows what the future is going to be like. Premature death is common today, with accidents, illnesses and more.
 

If you happen to be the primary source of income in your family, it can be distressing if tragedy strikes all of a sudden. What happens to all the loans? The house, car, educational loan and whatnot? What about maintaining the current standard of living of your family? I am a mother of two beautiful girls, and this is what I was thinking about a few years ago (pre-COVID) when I decided to take my life insurance policy.
 

God forbid something happened to me, I have absolutely no idea how my family would manage, and I still don’t know, but I do not want them to worry about the financial situation and my children’s education. I do not want their lives to come to a halt because one source of income has completely stopped.  Who is it for? Insurance is not something that only the salary class has to worry about. Even workers in the unorganised sectors ought to come forward and think of life insurance.
 

Many times, it is they who will need it more due to all the volatility in the incomes in this sector as well as physical conditions of work and lack of planning for old age in this sector. They tend to depend on the next generation, and we have witnessed how elders are treated when they do not have any income.

With insurance, a lot of these risks can be reduced. It is the duty of the educated to help these people understand the benefits of insurance in the long run.  Reasons to say yes Let me tell you that when we heard of life insurance policies in the past, all people thought about was death. However, that is not the case today. Of course, death cover is a part of it, but schemes today are planned out in such a way that we get to enjoy the benefits when we are alive.  It is a means to save money for your future, and it also helps in your child’s future when the time comes.
 

Education planning becomes much easier with the right policy. Since the saving portion of permanent life insurance grows and is also tax*-free, it also allows us to borrow against the cash value when we have the need. So, if you want to buy a house or pay for your child’s education and that too tax*-free, insurance is the way to go. An insurance policy also helps us in planning our taxes better and also ensures a happy retired life devoid of financial worries. 
 

Apart from that, if you have taken multiple loans, then with term insurance, you can affordably safeguard your family’s future in case something happens to you.   One thing that you need to keep in mind while deciding whether life insurance is the right saving for you is the different types of policies that are there. They are mainly permanent and term. Remember to do your research and clarify all your doubts before investing. However, do remember to save in life insurance as no matter what as there’s nothing to lose! 
 

L&C/Advt/2022/Sep/2333