Your Personal Financial Adviser

Everyone has something or other that is precious for him. Not talking about the abstract feelings here, like love, affection, etc. There are certain things that are of great financial importance – a person’s home, car, health, life, business, etc. and no one will deny that all these are subjected to risk of damage. Your home can get damaged of a fire or earthquake; your car may be stolen or got crashed and above all is your life, what if the breadwinner of a family becomes a victim of some mishap. The family will be under an emotional and financial crisis as well. In those circumstances, what supports you and your family is Insurance. Here are five good reasons that make insurance a necessity.

1. Security

Since core function of a life insurance is to protect financial interests of a family, it generates a sense of social security in people and society as whole. Basic amenities like food, shelter, and clothing, being physically and mentally fit and enjoying a standard of life are must for a happy and contented life. Any uncertain event resulting in damage to your precious possessions and in extreme case, death of a person can be devastating for whole family. Insurance is a necessity of your life planning as it provides you security in these situations. It ensures you financial security in case of unemployment, disability, sickness etc.

You can see life insurance as a necessity because absence of earning hand of a family pushes the family towards lower strata of society. But life insurance saves it from such suffering and offers some abatement from financial crisis.

2. Meeting potential future expenses

This reason holds good for middle aged people with children. They have potential expenses of their children’s education, settling them and their marriage. For a person having responsibilities of the family, life insurance is a necessity. If would save your family from sufferings in case you leave them alone in this world. However, if you are a youngster or aged person not having mush responsibilities then life insurance is not a critical need for you. Health insurance should be your main priority.

3. Uncertainty

Someone has very rightly said that life is uncertain. You can’t foretell what will happen the very next moment. This uncertain and unpredictable nature of life calls up for insurance as a necessity. Getting your assets or life insured does not mean that they will not be exposed to threats of damage or destruction, but financial loss associated with them  will be indemnified.

4. Investment

You can see insurance as an investment. You save from your monthly earnings for paying the premiums of insurance policy, be it life insurance, insurance for home, vehicle, business or health. Since delay in paying premiums result in increase in rate of interest of premium, so you cut your expenses for paying premium timely. This is helpful in middle and low income families for furthering savings as insurance amount serves as investment. Necessity of insurance also comes from this reason.

5. General Insurance

Any insurance except for that of life is General insurance. From the plethora of policy choices available in market, you can choose one or more, concordant with your needs.

- Middle aged persons having more expenses can life insurance policies offering higher protection but cost less.

- Children plans propose aid in expenses of children education and marriage.

- Unit Linked Plans or ULPs are for pecuniary proliferation

- If you are buying insurance for thriftiness and economic security, endowment plans are what you are looking for.

- In addition to savings and security, you demand liquidity i.e. cash convertibility; go for Money Back plans launched by various insurance agencies.

Almost all insurance agencies offer these plans under one name or other. You have to take out some time and thoroughly check what is offered by which scheme. A bit of care and awareness now will save you and your family from a big crisis in a critical situation. So, for leading a life in which you can expect a helping hand in a situation of financial crisis, insurance is a necessity. It acts as your buddy offering you help in odd situations.

Be Sociable, Share!

•