An average urban Indian has little or nothing to fall back upon in the event of a financial emergency. On a scale of 1 to 100, the protection quotient of Indians is a mere 35.
Low insurance penetration and little or no awareness among the general public only aggravates their prehensions. More than half of the Indian population feel that they would be left vulnerable financially if the earning member of the family should meet with an unfortunate incident.
36% are of the view that in case a family member was diagnosed with a critical illness such as cancer or heart disease among others, their life savings would be exhausted in a few months itself. To top it off, 80% are not even aware of the sky-rocketing costs of treatment of most of these illnesses. The situation is further complicated by the fact that one-fifth of those surveyed opine that they are completely on their own with little or no support from anyone.
This speaks to the dire need for life insurance in the lives of the Indian working class. The benefits of purchasing life insurance are plentiful and can make a world of difference in the life of the everyday Indian.
Purchasing life insurance as soon as you start earning is not only cheaper, but gives you an early bird advantage by securing the financial future of your prospective family. They need not be dependent on anyone for their day to day needs and can maintain their standard of living, even in your absence. It is also a useful tool in financial planning for the long term. It can fund your child’s education and pay off any debts such as a mortgage, two-wheeler loan or credit card debt. Not only is the premium amount eligible for tax deduction as per Section 80C, the death or maturity proceeds also qualify for tax saving under Section 10(10D).
However, even with all the benefits outlined above, it is important to carefully choose a life insurance policy, rather than buying one in haste. Since it is a long term investment, it pays to spend some time to analyse what suits your needs. Here’s how you can secure your family with life insurance:
So that’s how you can secure your family with life insurance. Ensure you take into account all the aforementioned points to arrive at the right policy as per your needs.
One term plan that you can consider is the iSelect Star Term Plan from Canara HSBC Oriental Bank of Commerce. You can benefit from inbuilt riders and flexible premium payment options. You can even increase or decrease your coverage, in line with your financial situation. To sum up, life insurance can be a boon for a working-class Indian family; with the iSelect Star Term Plan, you too can secure your family today.