Life insurance is in debate for past many decades around the world. It came into limelight in our country in the past decade with people having diametrical views on the subject. Some do not believe in planning the future and enjoy life as it flows. Others are not conscientious and want to secure the future of their families in any eventuality. The significance of life insurance in our part of the world is far greater then of developed world, particularly where State takes the responsibility to take care of the families left behind. Here, if the head of the family is deceased the wife and the children can only rely on the savings; that too if the bread earner had a good job or a reasonably good business or in few cases the extended family.
Many believe God has taken it upon himself to take care of mankind. In the same breath one must not also forget that it is said that “Have faith in God, but tie your camel first”. Therefore, a good insurance policy with a reputable company is that rope with which you tie your camel.
How can a Life Insurance Policy help you?
Having said this, let’s evaluate point by point as to why anyone should have a decent life insurance policy:
The greatest Misunderstanding about Life Insurance:
There is a general perception that a person has to die first for the family to benefit. It’s not so. In overwhelming cases the insurer gets the money he invested. This is actually a saving which he will receive with huge bonuses, top ups and profits earned throughout the insured period. In a way it’s a compulsive easy instalment savings a person does which otherwise would have gone down the drain in unnecessary shopping or expenses.
Many local Insurance Companies including Jubilee Life Insurance, Adamjee Life, TPL Life Insurance, IGI Life Insurance, EFU Life Insurance and State Life Insurance offer various plans that may suit your needs from marriage and educations plans for your children to retirement plans and health plans. There are various long-term savings opportunities available for you to capitalize on.
Uncertainty of Life is a Fact:
The political and law and order situation in our geographical area is pretty volatile. Bomb blasts, street crimes and target killing is in rampage. Many young die without any cause. Similarly, though the life expectancy is on the rise so is the various causes of dying young. Heart failures due to stress & anxiety, cancer, the wrong lifestyle. In such a situation if a sole earner dies the family is devastated. Life insurance in such a case can make sure that the family is taken care of on the financial front. Children can keep going to school, bills are paid on time, and the kitchen keeps running till a more long term solution is found.
Savings that help build a better future:
A person who has subscribed to life insurance plan is in peace in both ways; when he lives long enough the contribution towards the plan is returned in the form of savings, which can be used for children education, weddings, vacations, home improvements, etc… God forbid, if he is no more he goes peacefully realizing in his absence the family will not be traumatized financially at least.
Life Insurance Companies have various plans that can offer retirement and pension benefits. State Life Insurance, EFU Life offers Pensions, savings plan in their individual Life Insurance policies that can help you save and use your funds at a later stage. Similarly Jubilee Life Insurance has an extensive array of Life Insurance Plans that include retirement plans.
Cash Back Facility for emergencies:
Usually good insurance companies offer many insurance plans. This also includes cash back or redemption facilities up to certain amount of the payments made. Supposedly if a person has kept paying the insurance premium for 10 years on a life insurance of 20/25 or thirty years and suddenly he/she requires cash; ie. A daughter or son’s shotgun wedding, a health emergency. He can draw down to a certain amount. This amount will be however deducted at the time of final payment when the policy matures.
What can go wrong if you do not have a Life Insurance Policy?
Now that we have discussed mulitple benefits of a life insurance plan, let’s also make sure to look at the flip side; for those who shy away from subscribing to such plans.
A person who retires with no substantial savings. He can only depend on meagre amount from his provident/gratuity fund, that too if their work offers such services. Life insurance policies not only return back the premium over time but also there is an element of profit that the insured stands to benefit from.
- In case the head of the family falls critically sick and does not have a life insurance or any savings for his family. Lack of fund or being underprepared would only add to the stress of the situation. To avoid such instances one must invest in life insurance.
- In case of death, if the savings are not substantial and that is more than common in case of middle class, salaried persons. The family is devastated and may have to vacate the house if rented and often rely on elms from the near and extended families.
Insurance therefore by all means is smart way of protecting the ones you love and care for. In Pakistan the leading insurance companies have started offering insurance policies that are Sharia Compliant for people who have inclination towards Islamic financing. For instance Takaful Pakistan Limited, Jubilee Family Takaful, Pakistan Kuwait Takaful Company, Dawood Takaful Limited etc all offer Sharia Compliant Life Insurance Policies.
If you are not insured yet, today is the day when you should start researching the various product offerings available on the market.