Five important reasons why you need life insurance

The pandemic has arrived as an unfortunate innocuous reminder of the fragility of human life. The worries of the ones left behind has become a glaring reminder of the necessity of financial security for self and loved ones. Today, we are more aware of the vitality of our existence than ever before, and this has forced many to appreciate the earlier neglected importance of Life Insurance. Although, this financial tool has existed before, in the wake of the pandemic it continues to be seen as a bountiful aid. While a plethora of reasons exist for one to get Life Insurance, we’ve listed down five of the most important ones to help you navigate the path better.

To bring peace of mind

We can’t know when we’ll pass away. It could be today, tomorrow, or 50 years from now, but it will happen eventually. No amount of money could ever replace you. But life insurance coverage will bring you and your family peace of mind, and you’ll no longer have to question yourself whether they’ll be taken care of when you’re gone. Life insurance protects your heirs from the unknown and helps them through an otherwise difficult time of loss.

To leave an inheritance

Even if you don’t have any other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. This is a great way to set your kids up for a solid financial future and provide for any monetary needs that will arise.

To pay off debts and other expenses

Your family also needs insurance to cover any of your outstanding debts, like the mortgage, credit cards, and loans, and other expenses like funeral/burial costs that can easily run into the tens of thousands of rupees. You don’t want your loved ones to be left with any extra financial burden in addition to the emotional burden they’re already suffering.

To protect your family and loved ones

If your loved ones depend on your financial support for their livelihood, then life insurance is a must. This is especially important if you have young children or if your partner would find it difficult to sustain their standard of living if they no longer had access to your income.

To add more financial security

Like most parents, you probably want to know your kids will be well taken care of when you’re gone. You not only want them to get a quality college education but to provide for other life ventures like getting married or starting a business. For this reason, additional coverage is essential while your kids are still at home.

Now more than ever people have been forced to take a hard look at their existing insurance policies and reconfigure their investment priorities. With the rising cases and daily news of variants and a third wave doing the rounds, it is imperative to rethink your options and use the best of resources available for your benefit.

(The author is Founder of LXME – India’s first financial platform for women. Views expressed are personal.)