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Ask YOURSELF 1 QUESTION?

How much

will your family

needs monthly if

you are not with them

forever......

to have a same standard of

living you are giving them

TODAY?

if you have the answer... GO ON be insured ...

Whyinsurance


Most people are willing to pay an insurance premium to protect things such as their home and its contents, their car, boat or caravan. Business owners will usually also take out insurance cover to protect assets and stock, and to provide financial help if they face legal issues.

The Importance of Insurance
Insurance is extremely important for every individual:
>>Provides security:
The absence of an earning member in the family can make things very rough. Having a life insurance would at least make sure that your family is financially supported in case of some unforeseen incident.

>>Encourages savings:
Insurance not only protects against risks and uncertainties, but also provides a secure investment channel as well. The payment of premiums regularly enables systematic savings. The insured gets a lump sum amount at the time of the maturity of the contract.

>>Medical support:
Medical insurance policies are ones that cater to expenses incurred from treatment of various health conditions. Since anyone can be a witness to unforeseen illnesses and because the cost of healthcare is rising, a health insurance policy is considered to be essential for every individual.

>>Transfer of risk:
Insurance functions on the principle of the transfer of financial risk from the insured to the insurer. An insured individual’s expenses are recompensed by the insurer. This reduces the financial burden of paying for vehicle repairs, health expenses etc.

>>Economic protection against the loss of life. The emotional loss caused to the family of the insured cannot be measured in terms of money. However, the financial responsibility of the insured towards his family members are to an extent shared by the Life insurers. On the death of the insured, the family will have some money to continue having a comfortable life. The life insurance policy provides an option to choose the nominee.

>>A form of investment or saving. Many people buy life insurance as part of their investments. Most insurance policies guarantees a fixed sum of money payable either on the death of the insured or at the expire of the pre-determined tenure. Hence, many people keep aside a part of their savings for the payment of Life insurance premium in the form of investment.

>>Loan against Life Insurance Policies is a newest form of financial revolution. Many financial institutions offer loan against the surrender value of the insurance policy. This a safe and quick way to generate cash.

>>Enable the insured to be able to select their beneficiary. When buying a policy, one has to choose who the beneficiary of the insurance policy will be. In this way, they make sure that the material needs of their loves ones would always be met.

>>Reduces the financial implication of death. Life insurance reduces the financial burden that comes with the death of the breadwinner.

>>Tax saving weapon.

Why do you have insurance?
Insurance helps you: Own a home, because mortgage lenders need to know your home is protected. Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage.

Why it is important to have insurance?
It can also provide protection from liability, damages, and financial loss, but in the end, it usually comes down to money. ... In the case of automobile insurance, the reason insurance is important is that it protects you from having to pay damages in the event that you are found at fault for the accident.

Why you should buy life insurance?
Some people mistakenly believe that life insurance is a scam. This is due to the fact that the money for premiums is lost if death doesn't occur during the coverage period (in the case of term insurance), or because many people live to a ripe old age and continue to pay their permanent insurance premiums.

Why is it important to have health insurance?
Having health insurance is important for several reasons. Uninsured people receive less medical care and less timely care, they have worse health outcomes, and lack of insurance is a fiscal burden for them and their families. Moreover, the benefits of expanding coverage outweigh the costs for added services.
No one plans to get sick or hurt, but most people need medical care at some point. Health insurance covers these costs and offers many other important benefits. Health insurance protects you from unexpected, high medical costs. You pay less for covered in-network health care, even before you meet your deductible.

Why is it important to have insurance on your car?
Having car insurance is essential because it covers your expenses in the event of vehicle damage or injuries to other drivers, passengers or pedestrians. All motorists must be insured against their liability to other people, as stipulated in the Road Traffic Act 1988.


How life insurance is unique and most important and unavoidable part of a common man life?
There are many options available for a common man to invest their money, but Life Insurance not only unique but also very useful for common man, because its cover risk of Life.
1) Death Benefit:-
The life insurance provides benefit against the risks of your life & provides your family or nominee the insured amount or coverage in case of your unfortunate demise.

2) Survival/Maturity benefit:-
Apart from the simple death benefit you also get the maturity benefits or survival benefits wherein you get the sum assured plus the returns at the time of maturity, there is also an option of periodic withdrawals of your invested amount.

3) Investment & savings:-
Apart from the life cover, the life insurance also has prospects of providing a vehicle for investments & saving for your future needs. With different insurance plans like simple endowment plans, whole life plans, ULIPs, you have the option of saving for your retirements through pension plans or saving for your children future needs by investing in Insurance child plans wherein you can invest your money depending on your risk profile.

4) Tax benefit:-
You can save tax up to Rs. 1 lakh on Premiums paid for Life Insurance Plans under Section 80C. And maturity amount also is tax free.

5) Riders:-

The riders are special benefits given to the policy holders in addition to the life insurance cover wherein you are charged with some extra premium e.g. Accelerated death benefit rider, waiver of premium rider, disability income rider, accidental death rider etc. the most popular rider is Accidental death rider.

6) Premium payment option:-
You have the option of paying premium yearly, quarterly, monthly & you also have the option of single time premium payments where you have to pay one time. It depends on plan to plan of Life Insurance.

7) Plans as per needs:-
You can avail Insurance plans as per your needs & requirements, if you want to save for your child you can go for children insurance plans providing you with returns at certain important milestones of your children’s life like their education, wedding etc. If you want to save for your retirement you can invest in Pension plans either in ULIPS or in simple Endowment plans depending upon your risk appetite.

8) Loan option:-
In some life insurance policies you can also take loan against the life insurance policies, your eligibility for the loan amount depends on the type of policy, the premium amount, the term of the policy and the number of years you have paid premium for.

9) Paid-up of the Policy:-
In traditional policies, if you have paid the premium at least for three years and after that you are not able to pay premium due to your financial crises, the policy is enforce for paid-up value of your sum-assured and you will get maturity benefits of paid-up value.

10) Advantages of Share Market with Risk Coverage:-
Only Life Insurance can give you advantage of share market with Risk coverage of your Life through ULIPs product and from September 2010, IRDA has made customer friendly ULIPs plan and it is more profitable for common man.



Why Every One Need Insurance ?

LEARN FROM OTHERS MISTAKES

Read experience of an well educated widow...

Please use 15 mins to read this

Letter written by a Women, after her husband's death in an accident

"Few things I learnt after my husband's death:-

We always believe we will live forever. Bad things always happen to others.

Only when things hit us bang on your head you realise... Life is so unpredictable....

My husband was an IT guy, All technical. And I am a chartered accountant.
Awesome combination you may think.

Techie guy so everything is on his laptop. His to do list. His e-bill and his bank statements in his email. He even maintained a folder which said IMPWDS wherein he stored all login id and passwords for all his online accounts. And even his laptop had a password.

Techie guy so all the passwords were alpha-numeric with a special character not an easy one to crack. Office policy said passwords needed to be changed every 30 days. So every time I accessed his laptop I would realize it's a new password again. I would simply opt for asking him 'What's the latest password instead of taking the strain to memorize it.

You may think me being a Chartered Accountant would means everything is documented and filed properly. Alas many of my chartered accountant friends would agree that the precision we follow with our office documents and papers do not flow in to day to day home life. At office you have be epitome of Reliability / Competent / Diligent etc but. At home front there is always a tomorrow.

One fine morning my hubby expired in a bike accident on his way home from office.. He was just 33. His laptop with all his data crashed. Everything on his hard disk wiped off. No folder of IMPWDS to refer back to. His mobile with all the numbers on it was smashed. But that was just the beginning. I realised I had lot to learn.

        9 years married to one of the best human beings with no kids just the two of us to fall back on but now I stood all alone.

Being chartered accountant helped in more ways than one but it was not enough. I needed help. His saving bank accounts, his salary bank accounts had no nominee. On his insurance his mom was the nominee and it was almost 2 years back she had expired. But this was just a start. I didn't know the password to his email account where all his e-bill came. I didn't know which expenses he paid by standing instructions.

His office front too was not easy. His department had changed recently. I didn't know his reporting boss name to start with when had he last claimed his shift allowance, his mobile reimbursement.

The house we bought with all the excitement on a loan thought with our joint salary we could afford the EMI. when the home loans guys suggested insurance on the loan, we decided the instead of paying the premium the difference in the EMI on account of the insurance could be used pay towards prepayment of the loan and get the tenure down. We never thought what we would do if we have to live on a single salary. So now there was huge EMI to look into .

I realised I was in for a long haul.

Road accident case. So everywhere I needed a Death certificate, FIR report, Post Mortem report. For everything there were forms running into pages indemnity bonds, notary, surety to stand up for you. No objections certificates from your co-heirs.

I learnt other than your house, your land, Your car, your bike are also your property. So what if you are the joint owner of the flat you don't become the owner just because your hubby is no more. So what if your hubby expired in the bike accident and you are the nominee but if the bike is in a repairable condition. You have to get the bike transferred in your name to claim the insurance. And that was again not easy. The bike or car cannot be transferred in your name without going through a set of legal documents. Getting a Succession Certificate is another battle all together.

Then came the time you realise now you have to start changing all the bills, assets in your name. Your gas connection, electricity meter, your own house, your car, your investments and all sundries.

And then change all the nominations where your own investments are concerned. And again a start of a new set of paperwork.
To say I was shaken my whole life had just turned upside down was an understatement. You realise you don't have time to morn and grieve for the person with whom you spend the best years of your life. Because you are busy sorting all the paper work.

I realised then how much I took life for granted. I thought being a chartered accountant I am undergoing so many difficulties, what would have happened to someone who was house maker who wouldn't understand this legal hotchpotch.

A sweet friend then told me dear this was not an end, you have no kids, your assets will be for all who stand to claim. After my hubby's sudden death. I realised it was time I took life more seriously. I now needed to make a Will. I would have laughed if a few months back if he had asked me to make one. But now life had taken a twist.

Lessons learnt this hard way were meant to be shared. After all why should the people whom we love the most suffer after we are no more.

Sorting some paperwork before we go will at least ease some of their grief.
1. Check all your nominations...
It's a usual practice to put a name (i.e in the first place if you have mentioned it) and royally forget about it. Most of us have named our parent as a nominee for investments, bank accounts opened before marriage. We have not changed the same even years after they are no longer there with us. Even your salary account usually has no nomination.. Kindly check all your Nominations.
- Bank Accounts
- Fixed Deposits, NSC
- Bank Lockers
- Demat Accounts
- Insurance (Life, Bike or Car or Property)
- Investments
- PF Pension Forms

2. Passwords..
We have passwords for practically everything. Email accounts, Bank accounts, even for the laptop you use. What happens when your next in kin cannot access any of these simply because they do not know your password... Put it down on a paper.

3. Investments.
Every year for tax purpose we do investments. Do we maintain a excel sheet about it. If so is it on the same laptop of which the password you had not shared. Where are those physical investments hard copy.

4. Will.
Make a Will. I know you will smile even I would had I not gone through all what I did. It would have made my life lot easier a lot less paperwork. I wouldn't had to provide an indemnity bond, get it notarised, ask surety to stand up, no objections certificates from others...

5. Liabilities.
When you take a loan say for your house or car. Check out on all the what if, what if I am not there tomorrow,
what if I loose my job. Will the EMI still be within my range. If not get an insurance on the loan. The people left behind will not have to worry on something as basic as their own house.

My battles have just begun... But let us at least try and make few changes so that our loved ones would not suffer after we go. We do not know what will happen in the future.

Share this experience with your loved ones...

But as the Scout motto goes: Be prepared "

NEVER TAKE LIFE FOR GRANTED DO THINGS APPROPRIATE FOR THE ONES WHO DEPEND ON YOU WITH LOVE.

Please INFORM your friends and family.

Family management is not only cooking + cleaning + taking care of the dependents but also involves complex operational knowledge of finances...


And you THOUGHT you don't need IT, agree or not but ...

WE ALL NEED INSURANCE....

These are few real life examples where common man is at the receiving end of fatalties happening, point is NO ONE can confidently deny importance of insurance in life.

The persons lost in such accidents could not be brought back, but if they were insured their dependents could live a comfortable life in their absense.

 

Learning from above, atleast realise HOW MUCH YOU ARE COVERED FOR NOW?

Atleast consult any financial planner or insurnace agent today to discuss REQUIREMENT and OPTIONs available.