What is a life insurance?
The basic form of life insurance is a kind of contract between the insured and the company providing insurance, fulfilling the basic objective of providing a specific amount of money to the beneficiary in the eventuality of death of the insured. The cash benefit received after death can be utilised to take care of all of your family’s future needs.
Who needs insurance?
You don’t need insurance if you are not an earning member. Insurance is taken for the sole purpose to support your family and provide for their financial needs in case of your death. If you have a family with spouse and children to take care of, you need life insurance. But if you do not have dependents or if you don’t contribute towards the family income, there is no requirement for you to have insurance. After there is a halt on the incoming salary on eventuality of your death, there needs to be a financial support for the surviving members of the family to run household expenses, take care of child education, spouse health and so on. The basic intention of taking life insurance is ensuring your family does not endure economic hardship when you are not around.
What will be the outcome if your family is not supported with sufficient coverage?
It is an unbearable thought to lose your loved one which can amount to terrible loss for the family. There can be nothing worse if your family has to incur emotionally and financially if you have not done proper financial and investment planning. In that case, after your death if your family has to be constrained with regard to money to take care of basic amenities and meet forthcoming objectives, it could amount to additional stress on them. There is also the burden of funeral, medical bills, tax on the event of death and these objectives can be fulfilled only with the money at hand or taking debts. The existing financial resources would exhaust soon and force your family to cut back on the standard of living, education, priorities and even give up their home and accommodate in a smaller community. Thus, it is understandable what consequence your family might have to face from your death and lack of sufficient funds. It is only an adequate insurance coverage that can protect your family financially and take care of them.
Is there a necessity to opt for a life insurance cover in case you are also insured in a group insurance scheme by your employer?
It is always preferable to purchase a life insurance policy for individual as it will cover a good amount of money. Also your employer can at any moment take away the benefit of employee insurance, or it may be in certain situations that as soon as you leave your employer, you may not get the coverage any further.
Is it important to go through medical check up before buying a policy?
An insurance covering more than Rs 500,000 requires the individual to go through a medical check-up. But it can vary from company to company.

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About the Author:
There are many life insurance companies in India. These life insurance India companies provide different types of life insurance policies. For financial planning most people prefer ULIP plans over traditional pension plan. The ULIP plans are better because it combines regular insurance policy with child education, pension scheme & other benefits.

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