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Life insurance is perceived more as a way to get tax benefits than a necessary component of one’s life. This is a fallacy that needs urgent correction.
Life is extremely stressful for everyone today. Even youngsters are under tremendous pressure to excel at school, while adults are caught up in a perpetual race for success. In the midst of this come unexpected emergencies. These can bring life to a standstill and cause huge financial despair.
The people most affected are those who go through life without life insurance policies. The lack of adequate life insurance takes a heavy toll on the family’s finances. When the earning member of the family suddenly passes away or is confined to bed for recuperation, the family can suffer untold misery without an income. At such times, life insurance offers a safety net till such time that the family’s finances come back on track.

Looking at life insurance Investment differently
It is a challenge to get life insurance after an actual emergency has struck. Precious moments are lost filling out paperwork and looking for adequate coverage while the clock ticks on. Instead, life insurance should be purchased when one is young, healthy and without immediate fear of future disasters.
Most people look at life insurance policies as instruments that yield tax benefits in every financial year. But the crucial fact to remember is this: life insurance is not just an investment option. It offers benefits on the basis of a future requirement; hence people do not view it as seriously as other investments. However, there is a need to correct this thinking. Insurance is a security net for your family’s future that comes into play when your current circumstances change.
One must do more than merely leave a sum of money as savings for the family. The questions to ask are: What happens when the sole breadwinner of the family is unable to work or passes away? How long will the savings last?
The answer lies in taking life insurance.

Making insurance work for you
* Term plans are extremely beneficial because at a low premium, a person may get very high returns on the plan. The younger one is when purchasing the plan, the lower is the premium to be paid. Also, there is the flexibility of choosing the coverage and tenure of the plan.
* Life insurance needs to be viewed from the lens of ‘disciplined savings’ and asset allocation rather than ‘investment’. When one is young and able to pay even high premiums, one is creating a notable fund of money for the family in case an emergency strikes. It is also a means of creating a corpus for one’s retirement.
* Savings also occur in the form of tax benefits on the premiums one pays for life insurance.
To put it quite simply, life insurance is an intangible investment and as important as one’s material possessions.

*Tax benefits are subject to conditions and other provisions of the Indian tax laws and are subject to amendments made thereto from time to time.

Disclaimer:
The aforesaid article presents the view or an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ before making any decision.

PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
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Call us Toll-free at 1-800-425-6969. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203
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