'Grow your benefits, grow your life! Let your money do some of the hard work.'
Mr. Ahmed, a 28 year old employee of Manitron Consultancy, noticed this hoarding on his way to work. It intrigued him and, just as the light started, he realised the hoarding was talking about life insurance. He decided to go home that evening after work and do some research. The more he researched the more he realised that he has been foolish not to save regularly in a life insurance policy of his own. He said to himself, "I'm young and earning, and I have a whole life ahead of me. I can easily save a little bit and reap the benefits many years later." And he was right, long term savings are extremely wise when you are young. Not only will his money multiply over the years but he will get many other benefits. He can get protection when he is hospitalised, he can withdraw funds at the time of an emergency; even his wife and children will stand to gain. The more he read the wiser a long term savings plan seemed to him.
"It is important to buy adequate protection. Most companies advise protection to the extent of 8 to 10 times the annual income of the insured. Companies will offer adequate protection based on income, spending habits, standard of living, etc. It is important to assess everything when deciding how protection is required to maintain the standard of living in this inflationary environment, even in the case of the eventuality of losing the breadwinner."
Having newly acquainted himself with this concept, Mr. Ahmed realised the superb practicality of buying adequate protection now for ensuring the dignity of his family later.
Protection from critical illness
"Critical illness incidents are on the rise all over the world. Diabetes, heart attacks, cancer and hypertension are all diseases that affect people in India. Statistics show that at any given time there are over 25 lacs cancer patients in India. Over 8% of the Indian population has some form of cancer by the age of 60. Also, 33% of Indians in urban households suffer from high blood pressure. India’s great love for sweets has won it the dubious distinction of being labelled the diabetes capital of the world."
This data really opened Mr. Ahmed's eyes to a possibility that he wanted financial protection from. He definitely wanted his life insurance policy to include a critical illness and disability rider.
Cost of Postponement
"It does not take a mathematical genius to know that the earlier one starts saving the greater will be the benefit, purely based on the power of compounding. In addition the earlier one enters in a life insurance plan, the lower will be the premium. This is because of the lower chance of having a critical illness that will drive up premiums and offer less cover. Mr. Ahmed decided not to waste any more time."
This was all too exciting for Mr. Ahmed to contain himself. He realised that he shouldn't waste any more time and he should buy a life insurance policy immediately, as it is definitely a clear way to a brighter and more comfortable future for his own self and for his family.