Get the power to control your “Whole Life”

Get the power to control your “Whole Life”

Ask any one who is above 60, how much would they want to leave behind in assets when their time comes.

“Maximum possible” would be the answer… whatever they have would look a little short.

Is there a way one can create an asset which will pay in CASH and a lot of it during one’s life time and also after that to the children and grandchildren??

Yes there is, and it is cheap if you buy it today.

That is the WHOLE LIFE INSURANCE POLICY for you.

It is a myth that people don’t need life insurance once they are above 60. Unfortunately, the short sightedness with which Life insurance plans are bought and sold makes one to believe either Life insurance is a useless product or if at all required it is enough for a short term.

Both are basically flawed assumptions.

First of all no one says NO to life insurance per say, they only object to paying premiums for it,  and that’s why they want to keep it for a short term.

If Life insurance is available free of cost, there will be a long Q to buy it.

It is a common knowledge that one’s family’s income depends on one being alive, and life insurance

gives assurance that in case of death the family gets money and compensates the income or part of it.

It is up to the individual to decide if the family should be assured of that or should they be left on their

own.

If yes, then one can decide how much would be required and for that you have experts who can help you get the right amount of assurance which is called “Sum Assured”.

Once you have answered “How much” then the next question is for “How long” you need that assurance??

Here is the catch..

We are talking about Life insurance right?? And one does not know when one’s day is going to be, so why bother about the number of years life insurance should be there. Let it be there for the whole life and if the purpose of Life insurance is to pay money when death happens let it pay whenever it happens;

Is it not the right way to look at it??

Why would you want to buy a Life insurance plan for 10-15-20 years?? 

How can one be sure that exactly at age 60 all financial commitments will be over??

What if protection is required for another 4 years??

Will it be possible to buy insurance that time?? How costly it would be??

Why should you loose a crucial Asset behind your name at a particular age??

Life insurance is an asset and that can be included in WILL, so if a large amount of money is going to be available through life insurance, it can be used to equalize bequeaths to heirs and others.

For Ex. You have the following assets: 

  1. House – worth Rs.75 lakhs
  2. bank deposits – 20 lakhs
  3. other assets – 5 lakhs

You have 1 daughter and 2 sons besides your spouse. How will you WILL your assets which are fair and equal to all of them??

Difficult.. is it not?? This is where an asset which will pay in CASH at your death makes life easy for every one. Which asset will pay in CASH when you are gone?? Only asset that can do is “Whole life insurance”.

Now add in the list of assets a whole life policy worth 80 lakhs.. Now you can apportion this money in whichever way you want to make the bequeath equal and fair. For Ex. House and other assets for the spouse along with 25 lakhs of life insurance money and the rest of  75 lakhs of life insurance money to be divided among 3 children. 

If your insurance policy is going to end by 60, don’t you think you are losing a valuable asset??

A whole life plan offers multiple benefits such as

  • Guaranteed Asset creation at a cheaper price.

  • Guaranteed maturity benefit during one’s lifetime

  • Guaranteed cash benefit to the nominees after death, whenever that happens before age 100.

  • Guaranteed accumulation and once accumulated never goes down in value.

  • Guaranteed uniform premiums through out the premium paying term. 

It is the guarantee which makes the “Whole life” a winner. In a world of uncertainties and market ups and downs, there is still a product hiding from you with too much goodness. 

Let us clear some more myths ..

Myth – In whole life plan one has to keep paying premiums till one’s death. 

Fact – No, one can select how long one wants to pay premium and there are limited pay whole life plans are available.

Myth – Whole life plans give lower returns. 

Fact –  The premiums of whole life plans are invested in fully secured long term government bonds and other fixed income securities making it one of the most safe basket of your portfolio. More over the bonus money declared every year forms part of your policy and this never goes down in value irrespective of which direction the stock market goes.

Whole life plan gives the solid foundation for your portfolio upon which you can build your other variable structures like, ULIP, MUTUAL FUNDS, and STOCKS etc.

 

Technically speaking, having a whole life policy reduces the standard deviation in your

over all portfolios due to the guaranteed cash value build up which allows you to take

slightly more risk in other investments like the ones mentioned above. 

Every smart investor who ever made money made it sure that, they had a firm ground below their feet before they built castles above it. Whole life just does that.

The views expressed are the individual opinion of the author and readers are requested to take decisions based on their own judgments and seek expert advice. The author does not hold any responsibility for decisions taken by readers.

Peace of Mind..

Peace of Mind comes with knowing that your family is secured financially.

Review your life insurance cover

First, let us be clear about “Which” type of life insurance we are talking about. the one discussed here is NOT about SAVINGS but only about “Financial Protection in the event of death”.

So, we are NOT talking about plans which gives a maturity benefit.

So, please be rest assured that, I am not trying to “Sell” you some popular insurance plan like its normally done.
I would rather like to bring about an awareness on “Risk Protection”.

The subject is about “Term insurance cover”. This type of insurance covers the risk of death, period. It pays a lump sum ( Sum assured) when death happens even till age 100.

Why should one know more about this “Pure insurance cover“?

1. There is a risk of death before one’s old age due to health or accident. When an untimely death happens, it creates financial stress along with emotional stress. 

Your spouse and children might face the below situations.

{ Life insurance helps to ease out of the financial stress}

2. Assets may not be liquidated quickly to get money

{ LI money helps until the assets are liquidated. there is no pressure to sell quickly which might get lower price}

3. Income might stop

{ LI money helps as a corpus and interest can be an income stream}

4. Business may have to be closed.

{ LI money helps until such time the business is closed and realization of money come through}

5. Term loans, house loans, vehicle loans, OD etc must be closed.

{ LI money can be used to close loans}

6. Children future education and marriage expenses.

{Children future remains unaffected as dedicated corpus out the LI money can be deposited towards their future expenses}

7. Surviving partner will have difficulty in financially settling your share to your family.

{A term insurance taken under “Partnership insurance” will create a corpus to settle the share of the deceased partner’s portion to the family}

8. Property & business valuation related disputes may arise.

{ LI money ensures that the family is not financially affected during a difficult phase. A buy-sell agreement and a WILL along with adequate LI can solve most problems}

9. Spouse and children become dependent.

{ spouse & children are financially independent through LI}

10. Lifestyle of your family changes overnight.

{ LI gives your family a chance to maintain their lifestyle and dignity}

In order to avoid any or all of the above financial problems, one needs to buy a “Term insurance” which is equal to cover the above mentioned financial aspects.

For Ex., If you are a business owner, then you can look at 5 times the net profit + outstanding loans of your business, as a minimum cover.

If you are a salaried person, then you may look at 10 year annual salary + any outstanding loans as a coverage amount.

This type of “Term insurance ” plan is much cheaper in premium. So, the expense you incur is negligible compared to the “Risk protection” it offers to your family.

The important point to note here is that, this type of policy can only be taken if your health is fine and free from diabetes, heart problems or any other illnesses.

The irony is when people realize that they need this cover to protect their family, they may not get it.

So, the earlier in life when all your health parameters are fine, you must take a good sum of this cover for the longest possible period.

I can help you to calculate your life insurance coverage requirement through a scientific process called “human capital valuation “.

 

Based on your nature of your occupation such as Salaried employee or Business Owner (Sole proprietor, Partner, Director), specific term insurance plan can be selected and set up.

 

Kindly feel free to take my help in this regard. Buy today and have a peace of mind.

The views expressed are the individual opinion of the author and readers are requested to take decisions based on their own judgments and seek expert advice. The author does not hold any responsibility for decisions taken by readers.

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