Benefits of life insurance: In 5 simple points, this is what it provides to family

Benefits of life insurance: Life Insurance is not just a piece of paper, in fact, it is a financial cover for an emergency that could hit a human life anytime. Well, its a fact that human life is subject to risks of death and disability due to natural, accidental causes or other reasons. Whenever a human life is lost or a person is disabled permanently or temporarily, there is not just a loss of income for a household, there is also a huge loss to the family and their livelihood. 

To ensure that a family's financial position is not destroyed by teh untimely demise of an earning member, a life insurance is a must. Therefore, benefits of life insurance are many and every person should know about it. 

Director, A&M Insurance Brokers Pvt Ltd, Sumit Wadhwa revealed his thoughts on the benefits of life insurance. He told Zee Business Online, ''Having a life insurance is basically taking care of your financial dependencies and commitments. An individual should always have a life cover for himself and his family members. It is a financial life cover that provides help in case of any major emergency like death or disability. Also there are important requirements like children's life, their education, marriage, retirement planning, repaying a loan etc, which need to have a support in future". 

However, we cannot value the human life and no monetary sum can be determined to overcome the loss at the time of targedy. In life insurance, the sum assured (or the amount guaranteed to be paid in the event of a loss of a insuree is by way of a ‘benefit’ to him\her.  Life Insurance products provide a definite sum of money in case the life insuree dies during the term of the policy or becomes disabled on account of an accident.

Here are 5 benefits of life insurance - 

1. Financial support: To ensure that your immediate family has some financial support in the event of your demise

2. Education and needs: To finance your children’s education and other needs

3. Source of income: To have a savings plan for the future so that you have a constant source of income after retirement

4. Extra income: To ensure that you have extra income when your earnings are reduced due to serious illness or accident

5. Emergency requirements: To provide for other financial contingencies and life style requirements

Anyone who has a family to be supported and is a sole income earner requires a Life Insurance cover for sure. However, in view of the economic value of their contribution to the family, housewives should also have a life insurance cover. 

The children in the family can also be considered for life insurance plan in view of their future income potential being at risk.