Tuesday, 27 September 2011

Life insurance, secure your family financially

Life insurance gives financial protection to the dependents of the insured from untimely death of the insured. This financial protection helps them to compensate the financial loss due to the untimely death of their bread earner.

We acquire different types of wealth in our life time, which includes, house, land, car, livestock, and business institutions etc. These assets may give us a regular income or convenient life. But these assets may be damaged or lost due to fire, theft, accident, natural calamities etc. Insurance does not give us protection against this type of damage or loss. An insurance company could not prevent these causalities. But an insurance company can give financial compensation against these loss or damage which will give a relief to the owner of the asset.

Just like other assets the life of a person also can consider as an asset which gives regular financial sources from his work or business. Life insurance is based on this assumption that every person is an asset which gives a regular financial benefit. The asset value of each person differs from person to person as per their job, ability, education etc. These abilities may be lost or decreased due to any illness, death or accident. When an untimely death of a person occurred, the financial source from such person is over and the dependents of the person could not survive without enough money to satisfy their needs.

Through life insurance we can cover the financial loss of an untimely death or disability of a person. The dependents will get money to compensate the life of their patron. The value of each person should determine themselves, when you join a life insurance policy. He may determine it as 5 Lakh, 10 Lakh, 25 Lakh, 50 Lakh etc. But this money should cover all the financial needs of his dependents. They should complete all their financial goals just like the insured is alive. So it is important to determine the sum assured and the insurance cover.

You may have to buy a house, complete the study of your children, marriage of your children etc. etc. Determine all your financial needs and assure that all these goals will be satisfied, even if your death happened unexpectedly. So fix the sum assured, the amount at which your dependents should get at the time of the untimely death of you.

Join a good term insurance policy with a good insurance company and ensure that your dependents will get the desired amount in time, if any miss happenings occurred to you. Term insurance gives high life insurance cover with low premium.

Join the insurance as early as possible and upgrade the sum assured when you feel that the sum assured is not enough to satisfy the above mentioned financial goals.

Take the insurance policy till your retirement or till the time at which you can earn a regular income to support your dependents.

Reveal all required information’s to the insurance company to ensure the claim would not be refused or delayed.

Totally through life insurance policy you can protect your family even after your death. So do it wisely.

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