The Need for Insurance

Let's understand "Need for Insurance" through a case study 

Ajay is 35 years old and works for a multinational corporation (MNC). He has a 10 year old son, Vijay, whom he dreams will one day become a doctor. Ajay's spouse is a housewife, and his parents are retired and dependent on him. Ajay has a home loan and is making monthly investments for Vijay's higher studies and marriage and his own retirement. Ajay wants to ensure that Vijay gets the best of everything and that he himself is not dependent on Vijay during his retirement in the way to Ajay's parents are on him. So far everything is going well with Ajay's plan. But imagine what will happen in the following scenario.

One day while returning home from the office Ajay has an accident and dies. What will happen? Who will take care of the family, Vijay's education and marriage, Home loan etc? What are the option available to Ajay so that his family can be taken care of in his absence?

Now  put yourself Ajay's shoes and imagine you are the family income provider and have to face the above scenario. What will you do? 

Relax! Our intention is not to panic or scare you. We are using this case study to try to help you realize the importance of insurance which is the solution to all the problems Ajay faces should the above scenario happen. So, lets look at the scenario again and see how insurance can provide a solution.

Life Insurance provides protection to a family on the untimely death of the income provider. If Ajay has a  adequate life insurance cover, then should he die, the money received from the life insurance company can help to support his family.The insurance money will help to take care of the family living expenses, Vijay's education and marriage, and the cost of the home loan etc.