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Why Is Life Insurance Important!

Everyone knows why life insurance is important, but many of us choose to ignore the reality of what would happen if we were to die suddenly without the proper protection. The results could be devastating for your surviving family members, leaving them with a large bill for your final expenses, or even worse, loss of the family home because they can no longer cover the mortgage.


If you don’t currently have a life insurance policy, you are not alone. According to IRDA Statistics and Facts, which is a report put out by the life insurance industry, about 94% of the population don’t own a life insurance policy in any amount.

Unfortunately, the study found that most of us are in desperate need of a life insurance policy. Nearly 1/3 of Indians would feel the loss of the primary earner in the household within the month.

Get the Right Coverage

A large part of choosing a life insurance policy is determining how much money your dependents will need. Choosing the face value the amount your policy pays if you die.

All your debts must be paid off in full, including home loan, car loan, office loan, mortgages, credit cards, etc. If you have a Rs. 75 lakhs home loan and a Rs. 10 lakhs car loan, you need at least Rs. 85 lakhs in your policy to cover your debts. But don't forget the interest. You should take out a little more to settle any extra interest or charges as well.

  • Debt and final expenses: Add up your debts, other than your home load, car loan plus an estimate of your regular expenses.
  • Income: Decide for how many years your family would need support, and multiply your annual income by that number. The multiplier might be the number of years before your youngest child graduates from high school. 
  • Mortgage: Calculate the amount you need to pay off your loans and mortgage.
  • Education: Estimate the cost of sending your kids to college.

Top Reasons Why Life Insurance Is So Important

Life insurance has several purposes and Its most important that it can save the lives of the people you live with. If you still have doubts, here are some reasons why life insurance is a necessity, not an option:

  • Pay Off Debts: A life insurance policy can pay off any debts that you leave behind that would be a burden to your family. Debts such as a home loans, car loans, office loan, mortgage, credit cards and even your funeral expenses can have a dramatic impact on your family and their lifestyle.
  • Provide for Your Kids: A life insurance policy will ensure that your children can go to college, buy a home and even pay for their wedding if you die unexpectedly.
  • Peace of Mind: A term life insurance policy is an inexpensive way to give you and your family members peace of mind, knowing that they will be protected if something happens to you. You will no longer have to worry about their financial future and can rest easy knowing they will be able to continue their current lifestyle.
  • Supplement Your Retirement: Investment life insurance policies accumulate a cash value over the life of the policy that can be borrowed against tax-free. These policies can be used to supplement your retirement if your other investments fall short. These policies often come with fairly high fees, so be sure to compare the costs to those of other investment vehicles.
  • Protect Your Business: Regardless of whether you are using a life insurance policy to insure a key employee, fund a buy/sell agreement or simply provide a tax-free cash infusion (borrowing against the cash value of a investment policy), life insurance can be a major asset to your business.
  • Buying Insurance Is Cheaper When You're Younger: Not every millennial needs a life insurance policy. If you haven't created an emergency fund or you're still living off your parents' money, insurance shouldn't be a priority.
  • Helps Achieve Long-Term Goals: Since it is an instrument that keeps you invested for the long term, it would help you achieve your long-term goals such as buying a home or planning your retirement. It also provides you with diverse investment options that come along with different types of policies.

So now, you are considering a life insurance policy, you are in the right place. A Passcom Insurance independent ISP can help you assess your specific risks and financial goals before recommending a policy.

Whether you need a term policy, a investment policy or a combination of both, our ISP will do all of the legwork for you, gather quotes, and present you with a variety of options that will provide the protection that you and your family need.


Start protecting your family today, contact a Passcom Insurance ISP now.