Lets first discuss who should not take life insurance. If you are a person who does not have any family, if you are of no worth to the family, if you don’t care or love about your family or you don’t believe in charity, then there is surely no need to get a life insurance. But if you are slightly different from such a type of person, you need a life insurance cover.
Life insurance as a care and love
Every person has one objective in his mind, to make his family happy. The love and care a person has for the family should exist throughout their life and that is why he opts for life insurance. After the demise there is no one to hold the family.
Death itself is such an uncertain event that no one can make provisions for it. Just because you can’t see it doesn’t meant it’s not coming. You spent your entire life to make your family prosperous so that if your life finishes they’re going to sell off what you accumulated to live? No! Thus getting insurance is best you can do so make your family survive your emptiness.
Life insurance as a saving
If you ask me most easy way to save money then a life insurance policy, I’d rather fail. Yes! All you need to do is to pay premium and Life Insurance Company will give you your sum assured as a sure shot amount at the maturity.
Compare it with interested paid by the bank, mutual funds, arranging a broker. No one can give you assurity of such a high return. Shares although give you huge potential return but not assurity as they depend upon the market conditions.
Life insurance as a charity
Have you ever thought about that how life insurance companies pay someone Rs.10,00,000 even when the person dies by paying a single premium of Rs.10,000. Insurance is sharing of risk. Those extra Rs.90,000 comes from each and every individual who has taken the policy. And just dare go to the family of the person who got the claim and you’ll realise that you’ve done something very noble.
Life insurance as a medium to save tax
Both the premium payment and the benefits are tax exempted. This is to encourage people to buy insurance policy by the government because insurance plays a very big role in uplifting the society.
Life insurance as a piece of mind
If you are insured, you’re tension free! You’ll not complain and panic rather plan about using maturity benefits. You’ll know that your family will be taken care off if something happens to you. You are not wasting your entire salary as premiums are getting saved.
Thus life insurance policy increases your life expectancy by removing metal pressure and depression. As most of the untimely deaths are caused by carelessness and that itself is a mistake committed by an overly occupied mind.
The most popular reason life insurance customers give for not taking a life insurance cover is about the fraudulent practices of not giving the claim. It is very important to consider that Life Insurance Company sells promises.
A piece of paper and a promise is all one get in exchange of money. The intention can be doubted. But it is 100% correct that a life insurance company repudiate the claim if there are some contractual obligations. Thus, even if a single declaration in proposal form is incorrect, I’d say that you yourself are to be blamed for this fancy dream you were in regarding life insurance contract.
It is a regulatory requirement to give reason for each and every repudiated claim and to write each and every insurance condition on the policy document. If you won’t read them properly then you are the one dishonoring the contract.