Life Insurance Plans

Life insurance - The perfect New Year present

As each year passes, we acquire more and more expensive possessions. Our families grow in size and the scope of their needs increases with each year. We start by buying a home for the family. Then we stock it with furniture and essentials. Meanwhile, we enrol our children in good schools, buy a family vehicle, take foreign vacations, buy expensive clothes and also begin to save for the future.

Each year that we spend with our families is thus, a cause for celebration. Like many others, you must celebrate the start of a new year with a party and gifts for loved ones. But it is now time to depart from this tradition – we do not mean to say that you should not buy gifts, but that you should buy a gift of a different kind of gift for your family.

This year, you can kick off year 2016 with an extremely precious gift for yourself and your entire family – get a life insurance plan.

Why life insurance is important

Life insurance is an essential safety net you can cast around yourself and your family. It protects your loved ones against the vagaries of fate and ensures that your family members can continue with their lives uninterrupted even in your absence.

There are many who buy life insurance plans merely for tax benefits. While this is a useful benefit, it is one of the least important ones. When viewed through the lens of future security, there is nothing more crucial you can do than protect your family’s best interests at the present time. It might be too late to give your family the protection it deserves if you are absent – hence, do not defer taking life insurance plans for any reason.

Unlike term insurance, which are pure life insurance plans, you can take whole life insurance policies that offer maturity benefits and bonuses. Several people take life insurance policies such that their tenures coincide with major life events – for example, a plan taken for 15 years at age 35 will mature when the policy holder is 50 years old. By this time, he will have planned to send his child abroad for further education, and the policy corpus can help finance the study course.

Life policies can replace a lost income, help pay for children’s education and wedding, ensure spousal support and keep the home running despite your absence. It is the surest way to keep your family’s life on track even when you are not there to look out for your loved ones.

Your family might be surprised – and a little underwhelmed – by your choice of a New Year gift if you take a life plan. Sit them down and explain your motivation in doing so. Also show them the policy document, how the sum assured calculation works and how the claims filing procedure works. Once they see the merit in your gift, your loved ones will agree that taking life insurance is indeed a precious gift.