The importance of Life Insurance

As a part of its efforts to create awareness about the importance of life insurance, Ceylinco Life has produced a booklet on the subject for free distribution. The following is a summarised translation of its content.

* How do you view life?

This is a question that has many different answers. Life can be beautiful, rewarding, challenging or sad. What ever one’s perspective may be, the one fact that we all agree on is that life is uncertain. There are many positive things about the life but this is an unavoidable fact. Although we spend our lives happily with our loved ones, there are certain things that are beyond our control.

* What can we do then?

In our country, the concept of family is highly valued. Mother, father, daughter, son, sister, brother... the bonds of love are strong and we are committed to each other. When someone is in difficulty, we get together to help him or her. That is our nature.

* Is this wrong?

Of course not. Nevertheless, some things which occur in our lives cannot be controlled. No one can predict when illnesses will strike or an accident happen. Sometimes, such events might be the end of our lives.

* But there is no solution for this?

It is true that one life cannot replace another. Similarly one cannot expect the same degree of love and kindness from someone else. However, you can provide protection for those who were protected by your life.

Just imagine. Someone who loved you or someone that you loved suddenly passes away. What will happen to his dependents? What will happen to your dependents in such a situation? What will happen to us when we grow old and are not in a position to work and earn a living? It is then that we would appreciate the importance of life insurance.

* So how can we protect ourselves?

Life Insurance. Look at this scenario. You are unmarried. Your father and mother depend on you. If, unfortunately you happen to leave this world suddenly, what will happen to your beloved parents who had taken every possible effort to comfort you, to educate you and to bring you to a good position in society?

Who will spend on their meals, their medicine when they grow old or get ill? You may have relatives, but will they be in a position to take care of your parents with the current cost of living? They may be able to do so for several days, but not permanently.

* If you have life insurance, that would solve all these problems. That is just one facet of the story. Here is another. You are married and have a caring wife and loving children. You can buy them what ever they need.

Imagine that little by little you are also repaying the bank loan that you have taken to construct a house. All of these happen because of you. If you are to leave this world suddenly who will provide these things for your family?

But if you have taken life insurance, your wife and children would be able to live comfortably and perhaps complete the construction of your dream house and repay the loans.

That is what life insurance is all about. Although you spend happily and comfortably today, you cannot predict what will happen tomorrow. So leave that risk to life insurance.

* How can we afford payments for life insurance?

You may be a public servant, a person working for a private organisation or even self employed. Whether you receive a high salary or low salary does not matter. Everyone can get life insurance by investing a small amount of money.

You can select the most appropriate life insurance cover for the money you can afford to spend. When it comes to the selection of a life insurance company, you have to think carefully and should select the right one. You should talk to an experienced life insurance consultant and decide on your policy.

* Do we get the money spent on life insurance back?

If you face sudden death, your dependents would get the total insurance money and benefits. If you are alive when the policy matures according to the particular life insurance plan, you will get the total sum assured and the accumulated bonuses or dividends.

For example, if a person who has taken life insurance of Rs 1 million happens to die after paying just one insurance premium of Rs 1,500, his or her dependents would receive Rs. 1 million.

* Why you should have a life insurance?

• To ensure your dependents live comfortably if you have to leave them at an unexpected moment.
• To continue your children’s education
• To cover the costs when you or a family member falls ill
• To get a monthly income if you become permanently disabled
• To ensure loan repayments
• For a happy retirement life.

Life insurance is not for those who die. It is for those who live.