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Your protection needs require term life insurance

by on Dec 13, 2011

  • 274 views

If you really want to purchase a life insurance cover that is meaningful there is no alternative to Term Life Insurance. ...

If you really want to purchase a life insurance cover that is meaningful there is no alternative to Term Life Insurance.

Have you ever asked yourself the true purpose of purchasing a life insurance policy? We get many responses to this fundamental question – mostly incorrect. Invariably, the responses tend to be – “to save taxes” or “to invest and make the money grow”. These are noble objectives, but not for life insurance. The primary purpose of life insurance is to provide a financial cover to your dependents if you die early.

Let us assume that you are young, probably in your thirties and have a family comprising two young children. Professionally, you are doing and earning well. Your family is used to a high quality lifestyle. You have some financial liabilities such as a home loan, probably a car loan and some loans for durables. These financial commitments are under control because you have a good stable career. It feels as if nothing could go wrong. That assumption is normally true except that, sometimes, a sudden and unexpected death can derail everything.



Admittedly, early death is a rare event. Very few families go through this. But, the thing to remember is that for those that have the misfortune to go through this, the impact is cataclysmic. Such events set a family back by a decade or more. Many fail to recover. Look around in your family and friend circles and you will spot examples of how early death adversely transforms a family. The true purpose of life insurance is to fundamentally address this low probability but high impact event, because you do not want your family to go through this trauma.

The first question while insuring yourself should be “How much should I provision for and how much would it cost?” Everything else is secondary.

“Premature death is a low probability but high impact event, which you do not want your family to suffer from. This is the only reason for taking a life insurance policy”

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Your protection needs require term life insurance Your protection needs require term life insurance Presentation Transcript