We all love our family and want the best for them. That is why it surprises me that only 4% of Indians have life insurance. I am going to share a story of how life insurance helped my family:
The life we had
My father was an engineer in a reputed company, while my mother stayed at home and took care of me. At that time, we were living with my grandparents. After looking at the dismal state of neighborhood schools, my parents enrolled both of us in a private school. They had a lot of financial obligations that were solely dependent on my father’s income.
Around the time, my sister was born; my dad reviewed his corporate life insurance portfolio, which was not enough to support our family. So he calculated how much we would need if something untoward were to happen, considering current financial obligations and living expenses. On the basis of his assumption, he bought a term insurance policy. After a few years, we moved into own home for which my dad took a loan. He again reviewed his insurance portfolio and increased the sum assured. At that time, he didn’t know that it would turn out to be the smartest financial decision he would ever make.
20th July 1990: When things started to take a wrong turn
It was our summer vacation, and my father took us to a campsite near Mumbai for the picnic. As soon as we arrived, my father started complaining of a mild chest pain. He was a very healthy man who never complained of any cardiac issue. Thinking it was travelling that made him feel restless; my dad didn’t take it seriously and took some painkillers to alleviate the pain. But during the night, the pain worsened, and we had to call an ambulance. At the hospital, the doctors informed us that he had a mild heart attack and so wanted to keep him overnight under their supervision. However, during the night, he got a major heart attack and was rushed into the ICU from where he never came back alive.
Life must go on…
Suddenly, our life came to a halt. We had many expenses— home & car loan EMI, school fees, electricity and telephone bills, etc.; which were scary. But at that point of time, term insurance came to our rescue. The insurer immediately paid death benefit which was enough to cover our expenses, including home loan EMI. Of course, term insurance couldn’t help us emotionally, but it did replace the income on which we were depending.
Taking a lesson from this incident, I immediately bought a term insurance plan when I started earning to secure the life of my children in case of my sudden demise.
Our priorities change with time, especially after marriage and kids. It is true materialistic things can’t bring back our loved ones, but it is important to ensure that our dear ones lead a financially stable life even when we are not around. And, that is possible only if we buy term insurance. Besides giving death payout, these plans offer numerous benefits such as premium waiver, terminal illness cover, and increasing life cover. Also, they are eligible to get tax benefits under Section 80C and 80D of the Income Tax Act.
I am proud of my dad for doing the right thing. I have purchased a term insurance to protect my family. Have you? If not, then don’t delay any further, you can buy a term insurance plan online in 10 minutes!
Editor’s Note: The Above Story Was Authored By Meera Dewan