Life insurance is like a diya that serves as the guiding light for families in uncertain times. Life insurance is like a diya that serves as the guiding light for families in uncertain times. Life insurance is like a diya that serves as the guiding light for families in uncertain times. Deepawali is the festival of lights and depicts the triumph of light over darkness, even though it falls on a no moon night. This unique timing amplifies the significance of the countless diyas and lanterns that illuminate homes and streets across India. Each diya and lantern transforms darkness into a vibrant tapestry of happiness, prosperity and most importantly, security. It serves as a reminder that a ray of light can keep darkness away even on the darkest of the nights.
Life insurance is like a diya that serves as the guiding light for families in uncertain times. It provides protection, enables building wealth, and ensures a financially secure retired life. It is safe to say here that life insurance is relevant to individuals and their families across all life stages.
By including life insurance in the portfolioan individual can develop a well-rounded financial plan which will provide a strong safety net to self and family.
Let’s understand the significance of life insurance in more detail.
Life insurance illuminates the path ahead
As we light up our homes for Deepawali, we are reminded to illuminate our futures as well. Life insurance enables individuals to planfor potential challenges, due to life’s unpredictability. It is the only product which caters to the fundamental needs of an individual i.e. protection, wealth creation and retirement income.
The significance of Protection
Inarguably, we face uncertainties which can lead to a financial strain. Life insurance is that crucial safety net that provides financial protection to your family in the event of an untimely demise. Like we celebrate abundance and prosperity during Deepawali, life insurance provides customers with the peace of mind to celebrate life – knowing that the family will have the necessary financial resources to continue with their lives in case of an eventuality.
Investing in a term insurance plan, also referred to as income replacement products should be the first step towards building a robust financial plan. Some life insurance companies also offer term insurance products with the ‘Return of Premium’ option at the end of the policy period.
Wealth creation – long-term savings products
Life insurance offers long-term savings products such as Unit Linked Insurance Plans (ULIPs), guaranteed and partially guaranteed products that help individuals save systematically and build wealth while also providing life cover.
ULIPs provide exposure to equities and are most suitable for individuals with a high-risk appetite. Conversely, guaranteed and partially guaranteed products offer capital safety and consistent returns.
By investing in a long-term savings product, you are establishing a path toward long-term financial stability, whether it be for your child's education, purchasing a new home, or planning for retirement.
These plans not only provide life insurance coverage but also help in accumulating wealth over time, which policyholders can access in the future or borrow for immediate needs. This dual benefit aligns perfectly with the spirit of Deepawali in planning for a prosperous future. As families set goals for weddings, education, or major purchases, these life insurance products can be a strategic component of their savings plan, helping them achieve important milestones.
Retirement – guaranteed permanent income
As we celebrate Deepawali, it's important to think ahead of retirement – another key aspect of financial security. It is imperative to accumulate a sufficiently large corpus that can generate the required income to be financially independent, after retirement.
Annuity products are designed to provide guaranteed permanent income, not affected by market volatility and this is exactly what retirees want. Earlier annuity products could only be purchased by making a lumpsum premium payment.
This proved to a challenge for various customers. To facilitate a larger section of the country’s population to plan for their retirement, some life insurance companies have designed innovative annuity products which enable customers to make regular premium payments over the long-term.The permanent guaranteed income for life begins after the conclusion of the premium paying period. Annuity products give retirees the financial independence which is crucial to enjoy the golden years.It also gives individuals a legacy planning opportunity – the purchase price or premium paid is passed on to the nominees.
To conclude, Deepawali is a time when families gather to celebrate, exchange gifts and create memories for the future. It is also a time to reflect on financial security, protection, and the family’s future.
By choosing life insurance, we illuminate the future for our families, safeguarding their well-being and providing peace of mind. All it takes is one step towards smarter financial planning that brings prosperity and financial security for generations to come, truly making it a ‘ShubhDeepawali’ for the entire family.