Consequences of not buying life insurance

Consequences of not buying life insurance


Due to various misconceptions about life insurance, people often refrain from purchasing the same and instead get their family and themselves land up in a financial trouble. If you have not yet invested in a life insurance policy, then read about the consequences you are likely to face in the future, if you don't have one.


1. You are leaving your family in a state of financial crunch

Who will take care of your family after your death? Who will pay off all the loans and liabilities? Have you everthought about this? Purchasing life insurance is important to save your family from facing financial problems after your death. This means that your family will not just suffer emotionally, but also financially. Always keep in mind that an unfortunate event such as train derailment, tsunami and earthquake can cause your death anytime. So at all times, opt for a life insurance plan that will safeguard your family from such instances.


2. You are leaving your family in debt trap

You sure would have started a business, bought a car or a home even to provide your family a good lifestyle. But who will pay off the loans you have purchased from the bank to provide them with all the amenities? Debt does not end with your life and instead, your family members would have to pay off all your loans and liabilities on your behalf. By not purchasing a life insurance policy you are digging a grave for your family too. So when you are in debt, a life insurance plan such as a term plan would make for a good choice to let your nominee pay off all your loans and liabilities on your behalf.


3. Your child won't be able to live his dream

To help your child's dream turn into a reality, it is your responsibility to provide them with finances that can help them study from the college of their choice. Today, the cost of education in India is increasing rapidly and stands as a challenge for middle-class families. And this is when a child insurance plan can come to your rescue. Investing in a child plan ensures your child gets the required financial support to complete his education as well as other dreams. 


4. You are unprepared for big-ticket events

As you age, you would not longer like to work in a 9-5 job, would have to get your children married or start your own business or even take a foreign trip. How would you accomplish all this? Do you have a strong financial back-up that will help you at such times? The best way to tackle all this is to invest in a money back plan as it will offer you cash flow at regular intervals to sail through all the financial events in a hassle-free way.


5. You will be financially dependent on others in your old age

If you don't have a life insurance plan, then it is likely that your retirement is the end of your financial independence. If you have not yet invested in a retirement plan, then it's time you do so to ensure you live a financially independent life even in your golden days. Investing in a retirement plan provides you with a regular income flow that takes care of all your financial expenses. Retirement plan also provides you life coverage that compensates your nominee in case of your untimely death.


6. You won't save enough on taxes

One of the best ways of not losing your hard-earned money is to save on taxes. You can do this by investing in a life insurance plan that provides you tax benefits under section 80C and 10(10D) of the Income Tax Act, 1961. By investing in any type of life insurance policy, you can save taxes up to Rs. 1.5 lakh each year.


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