Is life insurance necessary

Life Insurance is an essential financial cover to be prepared for any contingency related to human life, such as death, injury, illness, retirement etc. Human life can come to a standstill in case of death and disability which can occur at any time. When an individual dies or gets disabled partially or fully, there could be a loss of income which can affect the entire family.

While it’s not possible to place a monetary value on human life, a certain number can be determined by estimating the loss of income in various scenarios. Thus, under life insurance, the Sum Assured (or the total money guaranteed to be paid out in the event of death or injury) is also known as ‘benefit’.  Life Insurance cover offers a fixed amount of money if the life insured dies within the policy term or is disabled due to an accident.

Following are the risks that every individual has to face:

• Dying soon
• Living long

Life Insurance is needed:

• To make sure that your family gets sufficient financial support in case of your unfortunate death
• For financing your children’s education 
• A thorough savings plan which can act as a constant source of income post-retirement
• It acts as an extra income source if your earnings have declined due to an accident serious illness
• It also provides for financial contingencies and many lifestyle related needs.