There are several concerns over taking an insurance, let's see why insurance is necessary for every individual.
A) Early Death
Everyone of us know that our life is unpredictable in terms of mortality and flow of income.We have adopted to a life style in which all our dependents and beloved ones would be sharing the happiness and the benefits of our present earnings.But,when all of a sudden the earning member of that family has died and left liabilities to the beloved ones...Wouldn't that be a painful situation?B) Advancements in Health Care
The mortality rate has declined rapidly even though the fact remains that the number of people who die at an early age is on the increase. This is mainly due to the advancement in healthcare and the awareness on medical facilities. This results in an increased spending at an old age. This increased spending is also due to increase in the costs of living apart from paying expensive medical bills. Unless they invest in Life insurance or other forms of insurance like health insurance it becomes next only to impossible to meet the financial demands especially during the old days.
C) Increase in the Cost of Living and Spending Power
The purchasing power of the consumers and the standard of living has experienced a steep rise over the years. The increase in National Income and gross domestic product are partly responsible for this. Individuals incur many unexpected expenses due to the growing needs. Insurance comes in handy to meet such an unexpected expense. It also makes sure that an individual is able to meticulously plan his finances.Insurance option is more or less an interest free loan. An individual can cancel his insurance policy and obtain a huge amount if it is imperative in meeting an urgent expenses and he does not have alternative sources for finance. Life insurance companies therefore do the needful to consumers.
