Image result for Insurance a Necessity, not a luxury

Insurance a Necessity, not a luxury

What is life?

Your life is like a cycle that starts at the point when you open your eyes in this world and ends when you leave for the heavenly abode. In between this, you directly or indirectly touch many other lives. Lives of your family members, your friends, your acquaintances, etc. all are somehow related to you. When we are young, our parents are our guardians; they take care of us, nurture us to the point until we become self-dependent. The life cycle goes on, kids are dependent on their parents till the time they become self-dependent, but by that time or soon after that, the parents usually get dependent on their kids (not necessarily financially, but emotionally, etc.).

So, there comes a time when three generations are dependent on you: your parents, your spouse, and your kids. Thus, the most important thing is to take care of yourself as much as you take care of your loved ones. One needs to value his or her life.

What if something unfortunate happens to you?

How many lives will it affect?

Do you have any backup plan for this?

Do you have Insurance?

Insurance is a protective shield, a cover for your damages. In simple words, it is a contract or agreement in which a company agrees to pay you for your losses or damages which you have sustained due to any unfortunate incident like an accident, illness, death, etc. in return for a sum of money called premium. So, you pay an absolute bonus for your Insurance to a company for a certain period, and the company will bear all the expenses which have been covered under the policy if the mishap happens. It is like sharing your risk.

In India there has been a general superstition according to which taking any protection policy is inauspicious. It is considered a taboo. Taking Insurance was considered a specific invitation to misfortune. But now things are changing, and so is the mindset. Having a protective cover is no more a luxury; it is the basic necessity of life. Evolving societies and culture, technological growth, fast-paced lifestyles have all made Insurance a must for everyone. Now there is protection policy for almost anything and everything, and it would be considered a dumb move if we don’t take these.

A life policy is the most popular kind of protection cover. It covers the risk of the life of the person insured. In this, there is an assurance from the company that in case of the death of the person insured, the nominee/beneficiary will get the policy amount. So, if the sole bread earner of the family passes away, the policy amount received by their family members will help them to re-establish their lives through difficult times.

Nobody wants his family to deal with financial liabilities during a crunch situation. A right life cover will take care of all your debts after you just like home loans, personal loans, or children’s education loans, etc. Your policies could save you taxes as well. The premium you pay on your system is eligible for a maximum tax benefit under income tax as well. If you choose a unit-linked policy, you can draw income from it or decide to sell it for cash as well.


Unlike in foreign countries, in India, most of the parents fund their child’s education and topmost priority for anyone of them is saving for a child’s education which can be done through child insurance plans. Such policies act as a support system for the secured educational future of your children. For example, you are a 30-year-old parent. You start saving ₹ 1 lakh per year under a 15-year child insurance plan with a sum assured of ₹ 10 lakh. If something happens to you or you, unfortunately, died at the age of 35 years, your child will receive ₹ 10 lakh in bulk to meet their immediate educational expenses. When the policy matures, the child receives, for example, ₹ 20 lakh or any other sum assured for their higher education.

Any protection policy which is not related to one’s life comes under General Insurance. There are reasons indicated in the system, and in the event of any loss caused due to it, the policyholder gets the compensation for it. Fire protection, Auto cover, Marine protection, protection against any burglary or theft, etc. come under this. I know a friend of mine who has everything covered under different policies. Right from his life, his family members’ life, his car, home, tv to his mobile phone; his concept is apparent; he says the only way to be one step ahead of time is to have a proactive approach towards it.

Why Insurance is no more luxury because not everyone is working in the public sector, the private sector has better-paid jobs but no retirement benefits. Fortunately, life cover policies provide retirement benefits that allow you to earn a pension and not worry about your post-retirement life. Through Retirement policies, you and your spouse can receive a regular allowance for life if you start saving for retirement from an early age with a retirement plan in mind.

If life is a mystery, then death is a truth. Some wise man has said prevention is better than cure, but this can’t be applied to life and its uncertainties. What we can do is to plan our best and be prepared for the worst. The need for Insurance prepares you for an uncertain future. Gone are the days when Insurance was considered a luxury; it is now a basic necessity of life. It is the only way where you can show your care; towards your family, their well-being, and their secured future. Insurance is love and attention, and so far, I have read nowhere where it was considered a luxury.



About the author

Leave a Reply

Your email address will not be published. Required fields are marked *