by Mr. Vijay Sinha Senior, Tata AIA Life Insurance
In our life's journey, we are exposed to five kinds of risks that will have a financial impact on us that are, risk of living too short, risk of living post a disability or / major illness, risk of not being able to save enough for children / or dependants, risk of living too long & risk of not being able to create enough wealth for self. Adequate amount of life insurance cover protects us by compensating the economic loss that we or / our families incur in the event of these risks.
During our initial working year, when we are unmarried and have fewer or / no liabilities, we tend to overlook the benefits of buying life insurance early. However, one needs to remember these two basic principles of life insurance planning:
 |
| Mr. Vijay Sinha Senior, Tata AIA Life Insurance |
Buying young ensures cheaper cover then and lesser requirement later, as one has to fill a smaller protection gap.
Securing aspiration of near ones, especially children, is a critical goal of our life.
The phrase “The early bird gets the worm“ applies very aptly in this context as well.
For example : If we assume an investment return of 8% per annum, to create a corpus of Rs. 20 lakh for a three year old child's higher education after 20 years, one needs to set aside only Rs. 59,259 every year and pay Rs. 10,07,401.
However, if we start saving when the child is 15-year old for the same goal, one will need to save Rs. 3,40,913 per annum and pay a total of Rs. 17,04,565.
While, we need to save for our goals by building a corpus, we also need to ensure that the goal amount is secure through adequate life insurance cover. Life insurance is key critical to building a strong financial foundation.
About the author..
Mr. Vijay Sinha Senior VP marketing, product development and agency training, Tata AIA Life Insurance
Email: info@tataaia.com
No comments:
Post a Comment