You don't know what will happen in the future as life is uncertain. Only death and taxes are certain in our lives. A life insurance policy will ensure financial support to your family in the event of your demise.
Life insurance brings a degree of certainty and assurance to our lives. You can pay a small sum of money in the initial years for ensuring the family and individuals who depend on you. Your children can continue their education, and your family can manage their day-to-day expenses. In short, it provides an umbrella of financial security.
These Type Of People Must Have Life Insurance
Many Indians are not aware of the importance of life insurance. As the majority of Indians belongs to middle-income groups, their dependents would benefit from the financial security and stability provided by a life insurance policy.
Here are six scenarios in which you could benefit from life insurance:
If you are divorced, and your partner is taking care of the children with financial support from you, your absence would leave them in a financial mess. If you have life insurance, you can finance your children's education and other needs even after death. The sum assured in the life insurance will give support uninterrupted.
Parent of a special needs child
If you are a parent of a child with special needs, you should take a life insurance policy. Otherwise, you may have to leave your child financially helpless after your death. Children with disabilities often require special care and things. If you have a life insurance policy, your child will be taken care of financially in your absence.
Outstanding home loan
If you have just bought a home or your existing house is still mortgaged, the sum assured from a life insurance policy can cover the outstanding home loan in the event of your demise. A life insurance policy gives your dependents the option to pay off the mortgage, although they can decide not to use it for that purpose.
You own a business
Business is always risky; one day is enough for creating debts and making wealth. For a business man issues related to debt and taxes are common. If anything happens to you, the entire burden falls on the surviving family members. If you have a life insurance policy, it will help you to pay off the debts even after death.
If you are employed, but your job is temporary, and no benefits are associated with it, it is better to opt for a life insurance. It helps you to have a savings plan for the future. You will get a constant source of income after retirement. Also, it ensures an extra income when your earnings are reduced.
It's common to have credit card debt, personal and students loan dues, etc. If it is not cleared when you die, your family needs to pay the outstanding amount. If you have a life insurance policy, the payout can take care of this debt.
The above-elaborated points are only a few reasons to buy a life insurance policy. If you don't have any dependents, then you can take a policy as an investment also. A life insurance payout can cover the cost of funeral expenses also.