Life Insurance is nothing but income protection

Life Insurance is nothing but income protection

You must recognize the importance of protecting yourself and your family if you were to die or suffer a serious illness.
But our lives are constantly changing—buying a home, receiving a promotion, getting married, having children or retiring—and it is just as important to review our level of financial planning when these changes happen.

If there have been a significant event in your life recently, now might be the time to assess your protection needs to ensure you and your family are prepared, whatever happens. Our best financial experts are always willing to come down to provide enough support on consultancy free of charge.

Understanding Retirement plan


Are we prepared to live long?

Yes, most of us want to live long, but the question is are we prepared for it?

Expenses provision method (EPM) as the name suggests it is providing a cash flow adequate to take care of the expenses post retirement. While it might appear to be a simple idea, our agents/divisors/consultants should not presume a figure for expenses and quickly work to find the corpus required. Many times even the clients estimate a rough figure and say it will be more than enough if we have about 20,000 rupees a month to cover our expenses, “we both of us at our old age may not have big expenses.

We are very simple people so, we will also lead a simple life”. We must not get carried away by these seemingly simple statements, because while we adopt an Expenses provision method (EPM) for retirement planning we are making a tight rope walking thereafter. There will not be much scope left later to re-adjust the corpus.

The following points have to be taken in the mind before estimating the corpus required:

1) The Family size2) Health history3) Spouses needs
4) Current levels of expenditures5) Liabilities and Assets in values and terms

The assumption that after retirement there will be only the couple to be provided is a wrong assumption. There are at time aged parents living with them and at times dependents with special needs, and even at times grand children need to be supported.

So while adopting the EPM a dialogue with the client about various possibilities in his personal circumstances is necessary. It can not be a “Questionnaire-fill-instant-plan”

Health history is a very vital information to plan adequately for the expenses required.
While at old age the likely hood of falling ill is ascending, people with certain history has to take special care. So health history gives some idea of two types of expenses normally associated with health. The first is related to preventive or maintaining activities like physical exercises, specific diet etc, the second is related to the treatment part like the insulin, puff, dialysis etc.,

There are some special needs of spouse which also need to be addressed. Many times religious attachments and commitments are contained under this head. Pilgrimages, religious discourses, etc. also will require cash provisions. Apart from these, they can still be some special needs which are not very obvious and the same can be found out only by engaging

into a conversation with the client about those “SMALL” things that give “BIG”satisfaction or happiness to them. Taking all the current expenditures and reducing those of which is not relevant post retirement, and then adjusting to inflation we must arrive at the value required to meet the same in those days, we must work out corpus that can generate this value on a regular basis.

Many times what is forgotten in the din of these working on a tight rope is the liabilities to be fulfilled. The current balance sheet must be carefully studied and all those liabilities should be valued at the future date and the amount required to settle them also to betaken into consideration. So also the future value of the assets and its sufficiency to meet out the outstanding dues. The excess asset can be used to build into the corpus for retirement planning. While doing this care must be taken in terms of the physical assets, that the cost of maintenance also should be provided in the cash flow.

The total of the above aspects will be the amount required to meet out adequately the post retirement needs. It is also advisable to provide for cash surplus for emergency needs.

We have seen both the RRM and EPM ways of retirement planning. One of the important aspect of both these methods is that we must quite early to provide adequate capital for our own golden days. If adequate capital can be provided then retirement can be truly an entry into a life of freedom to do what we desire to, and need not be an exit from dignified life.

The Life Insurance marketing personnel can make this world truly a paradise to live long. There are not many alternatives in term of long term instruments, that encourage disciplined regular savings to life insurance. So use this magic wand to bring about happiness and a great sense of freedom.

Importance of Whole of Life Insurance

Have you thought what would happen if your income suddenly stopped, or was drastically reduced? It is uncomfortable to think about, but how long could you maintain your lifestyle if you were unable to work. In this case we all need protection. It is simply life insurance. It is  a protection for a better future of the family.  Protecting the future of the family should start while you’re still young and earning.  Protection may vary into two option: (a)term assurance (b)whole of life.

Whole of Life insurance is a protection with return of premiums.  It has both an insurance and an investment component for the person insured.  If something happened to the insured person the death benefit will be given.  The investment component also accumulates a cash value that the policy holder can withdraw or borrow.

Whole of life is a protection in which we can be covered for all the following benefits…….you may include critical illness, permanent total disability, hospitalization benefit, accidental death benefit, long term care benefit, family income benefit, and waiver of premium.  Certain benefits which you cannot find in the the term assurance.  In this benefits that we get in whole of life critical illness will cover you until the age of 95.  Whole of life is the right protection plan that  can help to safeguard our family’s financial future.

Life Insurance

Most of us would wonder if we really need life insurance or not at all. There are many factors that we need to consider. To those who could leave behind family members on a very comfortable state then most probably they’ll choose to pass on it.

But, that’s not the case with majority of us who solely depends on our monthly wages. We may not be as fortunate as the others but we couldn’t be at part when it comes to looking after the welfare of our loved ones. It is heartbreaking to witness others who have members of their family struggle not just emotionally but more so financially after death of their loved ones. It is worse when that person happens to be the breadwinner of the family.

Choosing to have life insurance is a guarantee that we may not leave a fortune to members of our family but assuring that life after the death of the breadwinner would not be an added burden to those left behind.


Whole Life Insurance is a personal or family protection that offers level of premium for as long as the policy holder lives. An option of vanishing premium can be choose from 7 to 15 years if the policy holder aren’t able to pay the premium within that particular span of time. However, in case of disability or disablement to pay premium, policy holder can choose waiver of premium additional benefits too.

Most people usually aren’t interested in Life Insurance until they learn that it really works. Mediocre people usually thinks that Whole Life Insurance will only benefit their beneficiaries or themselves when they’re dead and that’s the main reason why they don’t buy it. Once policy holder fantastically discover the real benefits while they are still alive, they continue to buy it year over year and enjoy it as it’s provide accumulation of cash value which can be used when needed.