Importance of Life Insurance
The value of life is best realised when we imagine the future of our loved ones without us. All of us have had this dread of leaving the people who we always protected and cared for, alone in this rather cruel world. But no matter how much endearing is the idea of spending our lives with our loved ones, we can never know when life takes an ugly turn. Life isn’t assured, but it can definitely be insured.
Quoting V Manickam, Secretary, Life Insurance Council, “, “As part of Indian culture, our elders have always stressed on doing the most essential things first and then opt to carry on with other things. This is an integral part of the day to day conversations. “Sabse Pehle Life Insurance” comes from this very cultural nuance and will help establish an understanding of the essentiality of life insurance in our lives and the need to treat it as a topmost priority while planning for life.”
Speaking of culture, saving money has been an integral part of the culture of India. Be it saving by investing in gold, or the day-to-day saving of non-financial assets by women of the household, Indian culture has always stressed upon the need for saving to deal with eventualities.
Life insurance is not only a safeguard measure against unfortunate incidents but also a great financial tool for saving. It is one of the simplest and safest financial instruments and thus has to become the centre of financial planning of individuals as well as households.
Life Insurance thus serves a dual purpose – It is a saving as well an excellent investment. Not only this, it comes with perks like tax benefits, easy loans on the lower rate of interests, affordable premiums, encouraging thrift.
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates ‘risk’, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of the death of the breadwinner.
The contract is valid for payment of the insured amount during:
- The date of maturity, or
- Specified dates at periodic intervals, or
- Unfortunate death, if it occurs earlier.