Family Life Insurance Plans

When a kid builds a house of cards, he plans every single move with caution. He controls his breath, does not make any sudden movements, and takes one step at a time to lessen any disturbances. But just a tiny whoosh of wind can topple the entire house in seconds.

The same applies to life - it is completely unpredictable. You never know what might hit you, even if you carefully plan everything. This is why you should expect unexpected situations and be prepared for them.

Now, if you are the primary breadwinner of your family, think of how they would cope if something unfortunate were to happen to you. Their emotional and financial stability will be lost.

This is where life insurance comes into play. It is a nifty financial tool that will offer your family the financial security they need. Let’s see how.
 

How Life Insurance Helps Your Family

• It Acts As Income Replacement
  If you are the only breadwinner of your family, your untimely demise can stagnate your family’s everyday life. They might not have the funds to take care of even their daily expenses for the long term. The payout from your life insurance plan will help them cover expenses like school fees, groceries, electricity bills, etc.

• It Helps Maintain Their Lifestyles
  Your family, because of the financial security you provide, may be used to certain lifestyles - which might get compromised if you aren’t around to provide for them.A life insurance policy can help your family maintain their lifestyle by offering a financial safety net.

• It Aids Them In Repaying Existing Loans/Liabilities
  You might have taken out business loans, home loans, vehicle loans, education loans, etc. which are yet to be fully paid. If you were to pass away suddenly, the entire burden of repaying these will fall on your family’s shoulders. A life insurance plan ensures that they don’t have to run hither and thither to accumulate money. The claim amount can be used to repay the loans/liabilities.

• It Secures Your Child’s Future
  When you become a parent, you always want the best for your kids. But, if you pass away, their dreams and aspirations like going to a prestigious university abroad, etc. may shatter due to a lack of funds. This is when a life insurance policy can come to your rescue. The claim settlement amount will ensure that your child doesn’t have to give up on their dreams.

Let us understand this with an example

Vikas is a young and ambitious man. He is married and has 2 children. He is the sole earning member of his family.

Though it was not very comfortable for Vikas to think about his own demise, he understood the need for a secure investment option to create a financial cushion for his and his family’s goals. Hence, he chose a life insurance policy.

To ensure his family’s needs were met, Vikas invested in a term insurance plan with a cover of Rs 80 Lakhs and a policy duration of 25 years. The claim amount will be paid to his family if he passes away during the policy period. They can use this money to fund their financial goals and take care of their day-to-day expenses.
 

Conclusion

A life insurance policy is one of the crucial decisions you make in your life. When you pass away, the taunt of daily expenses, mortgage repayments, and tackling inflation all daunt your family. With them already worrying over your loss, let them not undergo other financial constraints. This is why a life insurance policy should be your first and foremost choice for your family’s financial well-being and security.