The most significant barrier tolife insurance is the cost. Many consider it as too costly to even think about adding to all the more squeezing needs in their present budget. Paying for the following takes priority over life insurance:

• 1. Housing
• 2.Utilities
• 3. Childcare

However, life insurance is not as expensive as you might think. Monthly premiums for online term plans are far less than the cost of a daily cup of coffee at the local cafe or your weekend movie nights.

*Standard Premium for 28 year old, non-smoking, healthy male with 30 years premium payment term and 30 years of policy term, excluding GST

You may have opted for life insurance through your employer because:

• 1. It was an easy checkbox
• 2.You didn’t have to put too much thought behind it

Though it was your first step toward creating a balanced financial plan for your family, the truth is that:

• 1. Employer-provided life insurance plan may not provide adequate protection Coverage usually ends when you quit your job

Additionally, suchplans only cover up to 1-2 times your annual salary, which may not go very far if you are married, have children and own a home.

Life insurance cover should be equal to at least your income, with experts recommending as much as 15-20 times.It might seem like a lot now, butit will make sense when you think about:

• 1. Funding all the monthly bills
• 2.Taking care of your children’s education
• 3.Paying off your house mortgage

If you and your spouse are contributing financially towards your household needs, youshould buy and maintain individual life insurance policies. If something were to happen to one of you, securing life insurance will make it easier for the surviving partner to keep life as steady as possible and handle the time and cost demands of all the household responsibilities.

Therefore, without having to worry about the lost income, life insurance can provide the means to cover for:

• 1. Household expenses
• 2.Mortgage or rent
• 3.Childcare

Yes, people don’t like thinking about death, and majority give this as a reason for not buying life insurance.Some individuals evenbelieve that planning for their owndeath, such as purchasing life insurance, resembles willing it to happen.

Hence, they prefer not to discuss it and choose not to plan for it either by giving reasons like:

• 1. “I’m too young to die.”
• 2. “I’m too healthy to die.”
• 3. “I have too much to do before I die.”

However, instead of thinking about the end, think about the financial security you are providing to your loved ones. With a robust life insurance planset up, your family members can continue to live the life you want for them:

• 1. Worry-free and
• 2. Debt-free

Many people don’t see the value in life insurance and ignore it because:

• 1. Its benefits are usually available in the future
• 2. It is not a tangible product (like a car or house)

That said, even if the basic premise of life insurance is ‘protection’, there are certain life insurance products available which allow you to use it andgoal-based savings tool, like:

• 1. Unit-linked insurance plans
• 2. Retirement plans
• 3. Child insurance plans
• 4. Savings and investment plans
• 5. Endowment plans etc.

Therefore, you can choose a plan that works with your life and budget. Moreover, you can also get an idea of how much life cover you need by using different life insurance calculators. However, if you are looking for a cost effective way to insure yourself and cover your debts, then a term insurance plans is the best way to get high cover at affordable price.

Just buying any life insurance plan does not complete your responsibility towards your family. It’s only when you buy adequate insurance coverage, you ensure asufficient amount that can support yourloved ones for a lifetime.

Simply put, buy the right amount of life coverthat can take care of your family’s future needs and goals, like:

• 1. Paying for your child’s education and marriage
• 2. Repaying your house mortgage or other obligations
• 3. Securing your spouse’s retirement

“ A wise decision is to buy a life insurance plan that completes your financial plan, rather than just being a tick mark in your portfolio”.