It is very important to understand the real meaning of insurance. Insurance is securing you loved ones future in all circumstances even if you are not there. A term pan very efficiently covers your family in case you are not there in future (that is if you die within the term). A term insurance is the basic and important aspect of insurance. However there is another aspect which we fail to realize and recognize, it is if we live longer than the term.
Don’t just plan for emergencies, also plan for longer life
With the advancements in medicine and improvement in the quality of life with each passing day, the life expectancy is gradually increasing. So, though you plan your short life with a term insurance, you also need to plan for a longer life. In fact factually speaking planning for the longer life is more important that the short life.
When you live longer you need to financially support your children’s education, career, marriage, house, and then your retired life. No one wants to be dependent on their children in their retired life.
Other insurance plans
LIC of India thus has term insurance, endowment plans, pension plans, children plans and some special plans designed keeping specific needs of today’s investors in mind.
As a responsible family person one must understand the different plans available and chose as per his preference or priority.
Another thing to remember here is that life insurance is not a once in a life time decision, it is a life long process. You must revisit your insurance portfolio every year and add on products as per your changed requirements.