Insurance: Why do we need it?

When we think of Insurance, many of us feel that we are too young, abhi kya jaldi hai, kar lenge….

 

Let me share something real.

 

Last year, one of my friend Vijay passed away suddenly in his early 40s.

No major illness—just a sudden cardiac arrest. And he left behind a wife, two school-going kids… and no life cover. His family wasn’t just dealing with grief. They were battling EMI stress, school fees, rent, and daily survival without any proper source of income.

That day, I realised something:

We insure our car and phone. but not our income—the one thing our entire family depends on.

Let’s understand: Life insurance isn’t an investment. It’s a responsibility.

We need it till someone is financially dependent on us. It is Not for tax benefits. Not for returns. But to protect our family from the weight of unexpected loss.

Because even if we are not around:

😞 EMIs won’t stop

😞 Rent doesn’t pause

😞and Bills will keep on coming

 

To start with:

v  We should consider having a plain vanilla TERM INSURANCE

v  We can take a cover of 10-15X of our Annual Income (e.g., ₹10 lakh income = ₹1-1.5 crore cover).

v  If we have loans, then we should also add that amount to coverage.

v We can also add riders like accident cover & disability protection etc., because sometimes life throws unexpected turns.

 

Let’s also understand the facts that:

🟡 It’s more affordable than we think

🟣 The younger & healthier we are, the lower the premium

🟠 The payout is typically tax-free

🟤 It can even offer benefits while we’re alive!

 

Let’s face the truth—life is unpredictable.

We’ve all heard stories like Vijay’s family. And it leaves a knot in our stomach, so don’t let “later” become “too late.”

Life insurance is not just a policy.

It’s a promise—to our loved ones—that their financial life is protected even if we are not around.