By Debarshi Nayak
As the adage Prevention is better than cure goes, the idea of insurance has evolved out of an inherent necessity in humans to protect, ensure and manage risk. But accidents dont come knocking. How do you plan for contingencies and ensure everyone you care about is financially secure enough to weather the loss? Term insurance plans are typically affordable insurance plans that provide full protection and financial stability to your loved ones in case of any unforeseen events.
Too Early, You Say?
Very recently at a Human Resource Management conference, I met a man in his forties distributing leaflets with a huge grin on his face. What initially struck as odd quickly changed to a bittersweet realisation as the contents of the booklet left me in quite a retrospective state. That life is ephemeral, and you never really know when it is your time.
In case you cannot be there to catch them, ensure that you leave a safety net, at least.
– Anonymous.
It is never too early to cast a safety net for your near and dear ones. It is not something youd look forward to, but as you start imagining a crisis, you will begin to realize how life insurance plays a big role in ensuring the financial security of your family. If that does not have you convinced, think about the financial obligations and debts you might be having right now you wouldnt want them passed onto your family under circumstances where they are already coping with your loss.
Its also essential to get a life insurance as early as possible the cost increases exponentially with age. Buying life insurance is often like fixing a leaky roof. The longer you wait, the more expensive it gets!
But I Already Have an Employer-Provided Workplace Life Insurance
Life insurance provided by your employer might sound like adequate coverage, but it only covers hardly about 3 to 4 months worth of your income at best. It sounds like a lot of money until you realise that it has to cover some or all the expenses in your absence. And if you leave the job, its usually the type of insurance that doesnt continue into your next stint.
If you want to convert your corporate life insurance into a personal cover, youd probably end up paying more than the charges of personal life insurance plans.
Guessing How Much Life Insurance Cover Youd Need?
Many people end up wondering how much they should invest in life insurance 5 times their annual income? Some other figure based on their financial obligations? The best answer to it would be it depends. Aegon Life has come up with a smart term plan calculator that can give you an overview of how much you should spend on your life insurance and the best course of action.
The man I met at the conference had a near-death experience. And at that moment, none of his accolades, social standing, or achievements mattered. It was just his family, and how it would impact them.
Youll never be younger than you are today. And two of the most important factors for getting affordable life insurance coverage is that you are young and healthy. It’s always better to be 5 years too early, than 5 minutes too late.
Featured Image Credits: Pixabay