How can you protect your family with life insurance!

Arvind's dear friend and neighbour, Sahu Ji, was excited to have entered a new phase of life. Sahu and his wife, Veena, recently became first-time parents to a beautiful daughter. They had been preparing for months to welcome the new-born. They renovated their home to make it cosier and safer for the baby. As Veena filled the wardrobes with new baby clothes, Sahu already started looking for the best prep-schools in the city. 

Two weeks after Veena and the baby came home, Sahu called Arvind in a panic. Just like most new parents, even he was extremely nervous. 

Sahu: Mein ne toh pichle saal baby ke naam ek FD bhi kara li thi. Pata nahi kyun I still feel like we're missing out on something.

Arvind: Veena bhi Nisha se keh rahi thi she's worried tum logon ko kuch hogaya toh baby ka kya hoga. Ab honi ko kon taal sakta hai yaar? We can only prepare ourselves for the unexpected. Aur poori suraksha chahiye toh tum log life insurance kyu nahi le lete?

Sahu: Does it really help? And what about all the horror stories we hear about lapsed policies and rejected claims?

Arvind: Tu terms ke hisaab se premiums bharega toh koi pareshani nahi hogi. And think about all the benefits this one investment can give you. Let me tell you about it.

Your family can live the life you'd have provided

The most important benefit of life insurance is the financial support it can provide your family to manage their finances when you are not around. It becomes even more important if you are the primary breadwinner. Your family can take care of their needs and continue living a comfortable life just as you would want them to. Even in your absence, your family can have the financial security that you would have provided them with otherwise.    

Your family can continue fulfilling their dreams

Today, some life insurance plans can offer you the opportunity to grow your money while providing security against illnesses and demise. At the end of the chosen tenure, the multiplied amount can be used to pay for your child's education or wedding, buying a car or a bigger home, etc. while taking care of daily needs. Additionally, if you choose a term life insurance it can act as a long-term investment that pays the beneficiary a lump sum on maturity. You can also opt for whole life insurance that will cover you for life and help your loved ones manage their finances with the assured sum in your absence.

Read Here’s how to budget to achieve your dream lifestyle to get better at managing money.

Your family won't have to bear the burden of your debts

Your departure from their lives would be stressful enough for your family. You don't want to leave them with more things to worry about, especially not any financial burden. Even if there is unpaid debt like a home or education loan or large bills that you bore; your family's stress can be significantly reduced with the help of the assured sum to take care of such expenses.  

Your family can enjoy an inheritance

Even if you don't have any other savings and investments to pass on, whole life insurance can act as an inheritance from you to your family. Depending on how broad and large a policy you invest in during your lifetime, your family will have that much more financial security even when they are on their own.

Go to Why should you have a spending plan? to learn more about the importance of saving money.

Your family can save more with tax benefits

Under Section 10 (10D) of the Income Tax Act, your loved ones or the beneficiary will not have to pay any tax on the amount they receive as death benefits basis the policy. As a working parent, you may worry about added expenses. But even the insurance premiums you pay are tax-deductible under Section 80C of the ITA, making life insurance a wholesome investment that can help you save money in many ways while providing long-term security to your family.  

Sahu: I never thought life insurance could help someone in so many ways.

Arvind: That's not all. The sooner you buy insurance, the cheaper it is. When you are young and healthy, you will have to pay smaller premiums than when you get older and possibly develop illnesses.

Sahu: Wow! I think I will definitely buy life insurance. Thanks, yaar. Isse meri bohot pareshaniyan door ho jayengi!