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The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.
© Copyright 2010

Life Insurance – A Gift of Love

Posted on April 16, 2009 13:25 by Admin
 
If you were to die could your family or dependants, pay for your funeral, organize the financial affairs, service pre-existing debt and continue their current standard of living without you? This is why life insurance is important.
 

The word ‘LIFE’ has a big IF in it, which means uncertainty.

IF you live, you will provide for your family - Pay the mortgage, provide food and clothing, and pay for education. But there is only one way known that will remove this big IF out of LIFE:

LIFE INSURANCE

Life insurance is nothing but the replacement of financial income of the breadwinner. For…when a breadwinner dies, not only a husband dies, not only a parent dies, but the INCOME dies as well. Mr. Shah started saving through a bank. He diligently saved for 4 years.

In the 5th year he succumbed to the desire for a motorbike. He spent all his savings plus some loan on the new bike. Shortly afterwards he had a bad accident. A long hospitalization…and his family lost him. A legitimate saving and a very normal desire. But at his death all he left for his family was a badly damaged bike, unpaid medical bills and a bank loan.

First things first. Were his priorities right? Should he not have invested in life insurance first? Time would not have limited his capacity to save. His family would have received a sizeable amount at his death. He would not have fallen a victim to the temptation to spend.

A person, who does not insure his life adequately, gambles with the greatest of all values. And if he loses the gamble, he is making the loved ones pay for the folly through their lives. How much do you love your family members? Enough to sacrifice your small pleasures of today for a better tomorrow for them? Life insurance covers two basic risks - the risk if dying too early and the risk of living too long.

It is security today and savings tomorrow. A young person always feels that he should have insured for less. But every old man feels he should have insured for more, because the heaviest burden he carries in his old age is his empty purse!

They say when there is silver in the hair there should be gold in the pocket, otherwise silver loses all its value. Life insurance is compared to the spare tyre of a car or a parachute or a life-saving pill. It is peace of mind. Either you buy it with money today, or your wife and children buy it with sweat, toil and tears tomorrow

Source: Apna Paisa

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