How Life Insurance in India in India Saved a Family

Life insurance coverage helped a family maintain their standard of living after the death of the earning member. Read the story here.

Life Insurance Helped Saved Her and Her Kids – A Truly Touching Story

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Life insurance coverage in India stood at merely 3.3 percent in FY15, a 10-year low, says an article published in Business Standard in June 2015. The importance of a life insurance policy is only realised when the claims are settled and you breathe a sigh of relief. Buying a policy was possibly one of the smartest financial decisions my husband ever took in his life. My husband expired six months ago, in August 2015, in a road accident.

My Story & Life Insurance Saved Us

My husband was 35 when he passed away, leaving me and our 8-year-old son behind. It was a major setback for me because he was not only my life partner but also my business partner. Five years ago, we started a small production house of handcrafted dress material in Mumbai. My husband bought a life insurance policy a year later for financial security. With very little premium payment; we were able to secure a cover of Rs  50 lakhs for 30 years.

After my husband expired, the responsibilities for the business and the household came upon my shoulders. I filed for claims settlement 10 days after my husband’s death. Within a week, after proper verification, I got the lump-sum amount of Rs 1 crore. My husband had also bought an additional accidental rider. Insurance companies in India offer twice the sum assured in case of accidental death under the accidental rider. I had not realised at that time how beneficial this money would prove to be.

I used the sum assured to repay the Rs 50 lakhs home loan that we had taken 3 years ago. I paid off the home loan with Rs 40 lakhs after my husband’s death. I then decided to admit my son in an international boarding school in Panchgani in Pune. I took this decision owing to the fact that I wasn’t able to give proper care and time to my son due to increased business activity. The sum assured helped me finance my son’s admission and boarding.

Lastly, I fixed a large chunk of money for a period of 10 years for my son’s higher education. Looking back, I realise that I would have been in a major fix had there been no life insurance policy. Having experienced this first hand, I would urge each earning member of the family to go out and buy a policy today, whether you are a businessman or a salaried individual. Life insurance in India can be bought online within minutes. In fact, online policies tend to be 30 to 40 percent cheaper than their offline counterparts.