Why Life Insurance is Required

Why you require Life Insurance?

All of us face the risk of either dying at an early age or living for a long span.
How do you combat this situation?


Buying Life Insurance will ensure that your family has financial support in the event of your death
Finance for child education and various other needs

Taking care of your retirement


To have a savings plan for the future and providing funds for different financial contingencies.

Should I Buy Life Insurance

If you have dependents or significant debts that are more than your assets, then you need insurance to ensure that your dependents are looked after if something happens to you.


If you don’t have dependents or debts you can still consider life insurance as it is an effective tool for systematic and regular savings.

Retirement Planning

Retirement is for everyone. We need to plan it out at an early stage.

Mostly in private organizations, we don't get pension. So you need to have a good savings and invest somewhere wherein you will get a regular flow of income like pension.

Moreover, as age progresses, our health slowly starts giving lots of problem. So dthere is medical cost which needs to be taken care of as age progresses.

Taking all these factors, I personally feel we need to be financially secured in the old age and moreover there is life-longevity.

I personally feel this is a good retirement planning provided you start planning today itself.

For a person of around 32 years, you need to pay a premium of Rs.61,139 every year for 25 years and risk cover starts from Rs.20 Lacs increasing to Rs.48 Lacs,.

From the age of 57 years, you will be getting an amount of Rs.3 Lacs every year thereby increasing by 5% every year till the age of 75 years. You will have insurance cover + you can take loan against your policy after the age of 60 years.

Buy Life Insurance Today

You Don't Buy a Life Insurance Policy, You Buy an Education for the Kids
A Lifetime Income for Your Spouse
A Pension for an Old Person
You Buy Peace of Mind, Happiness & Contentment When You Buy Life Insurance.

(Plan Closed on 31 December 2013)


There are plans from LIC which are quite good like Jeevan Saral.

This plan has got a 'Golden Peacock Award'.

In this plan, you can invest any amount starting from Rs. 250 (like 250,300,350, 500,1000 or 2000 or 5000 or 10,000 etc) depending on your financial capacity.

For example You are 23 years of age:
a)Plan I: If you invest Rs.10,000 per month: Assuming you invest Rs.10,000 per month i.e. monthly premium of Rs.10,208 or yearly premium of Rs.120,100 for 25 years, insurance coverage will be 10,000 x 250 times = Rs. 25 Lacs. Maturity returns after 25 years will be approx.. Rs.90 Lacs. In case of natural death, nominee will get Rs.25 Lacs + premiums paid till date are returned back (excluding first year premium). In case of accidental death, Rs.50 Lacs + premiums paid till date are returned back (excluding first year premium). Also partial disability factor is covered.



b)Plan II: If you invest Rs.5000 per month: Assuming you invest Rs.5000 i.e. monthly premium Rs.5104 or yearly premium of Rs.60,050, you will get maturity amount of approx..Rs.45 lacs after 25 years.


c)Plan III: If you invest Rs. 4000 per month: Assuming you invest Rs.4000 i.e. monthly premium Rs.4083 or yearly premium of Rs.48,040 you will get maturity amount of approx.. Rs.36 lacs after 25 years.

d)Plan IV: If you invest Rs. 3000 per month: Assuming you invest Rs.3000 i.e. monthly premium Rs.3063 or yearly premium of Rs.36,030 you will get maturity amount of approx..Rs.27 lacs after 25 years.

e)Plan V: If you invest Rs.2000 per month: Assuming you invest Rs.2000 i.e. monthly premium Rs.2042 or yearly premium of Rs.24,020 you will get maturity amount of approx.. Rs.18 lacs after 25 years.

f)Plan VI: If you invest Rs.1000 per month: Assuming you invest Rs.1000 i.e. monthly premium Rs.1021 or yearly premium of Rs.12,010 you will get maturity amount of approx.. Rs.9 lacs after 25 years.

You are saving tax on LIC premiums paid.

Do I Require Life Insurance or What

There are many people who wonder if they require life insurance.

At the same time, there are people who feel they have sufficient insurance to take care.

But life insurance is a must for every people.

Along with life insurance, you can go for other savings also like Mutual Funds/Trading (provided you are ready to take little risks), PPF Accounts, Bank Fixed Deposits or Recurring Deposits or Company FD’s (good company offering fixed deposits).

Savings can act as a security for your family.

For everything you require money.

Savings can help in meeting daily expenses, housing as well as education expenses.

What will happen if one of the earning member pass away all of a sudden? Losing income can have lot of impact on the daily lifestyle. However in such a case, life insurance can minimize the impact.

For short term of 5 years or 10 years or 15 years, you can go for Recurring Deposits/Fixed Deposits/ Systematic Investment Planning (SIP’s), STP’s of Mutual Funds and also invest in Public Provident Funds (wherein you get tax benefit also)/NSC.

For long term say 15 years or 20 years or 25 years, you can go for life insurance. When you choose higher term, the premium is also on the lower side and returns are higher.

Power of Savings

There are many people who wonder if they require life insurance.

At the same time, there are people who feel they have sufficient insurance to take care.

But life insurance is a must for every people. It can act as a savings as well as security for your family.

I can cite an example.

I am a South Indian residing in Mumbai. For conducting religious functions, we have priests. The priest had 2 children i.e. 2 daughters. When he was around 28-30 years, he used to earn very well and had the habit of taking insurance + saving a certain amount of money every month. Time went by and after 10 years, he started getting lots of health problems like blood sugar & blood pressure. Ultimately a stage reached when he was finding it hard to attend to his normal duties. Then he got one of his daughter married and thereafter survival became very difficult for him. A stage came when he had to spend a lot on hospitalization. Ultimately he passed away. Today his family (wife + other daughter who is yet to get married) are able to survive on the money the priest had saved through life insurance + little savings in hand.

This is the power of savings.

If you do it, if not you, your family will at least enjoy the fruits.