For a Complete Financial Plan ; Insuring Your Life for an Adequate Amount Is One of the Best Legacies You Can Leave for Your Financial Dependents. If You Pick the Right Policy at the Right Time, Life Insurance Can Be an Excellent Tool for Wealth Protection, Accumulation and Preservation.

India Today › October 29, 2007

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Summary

In the 1980s, the Operation Flood campaign ensured that families made milk a vital part of their diet. Milk sales soared as a result. That was followed by a campaign to popularise eggs, which, of course, led to higher consumption of eggs. Yes, marketing works. Particularly if the product itself is good, but relatively unknown or unpopular. It's worked very well for insurance. Over the years, the industry has been working quietly to ensure that insurance is treated not merely as a tax-saving tool but as an instrument to protect the financial well-being of one's dependents, and an effective wealth-creation and tax-saving tool.

Insurance can be the foundation of a sound financial plan. Says Bengaluru-based financial planner B. Srinivasan: "It's one of the few products that actually has a financial start and finish. It will serve just about any individual as a good investment tool." For instance, if you buy an endowment plan and die during the tenure, your dependents get the maturity proceeds; if you survive the term, you get a big corpus on maturity.

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Extract

For a Complete Financial Plan ; Insuring Your Life for an Adequate Amount Is One of the Best Legacies You Can Leave for Your Financial Dependents. If You Pick the Right Policy at the Right Time, Life Insurance Can Be an Excellent Tool for Wealth Protection, Accumulation and Preservation.

When thinking about your financial future, you are likely to focus solely on your investment strategy. That's what most of us do. You ask questions about how you will reach your financial goals for retirement, education for children, and other long-term needs. Most of us tend not to think of life insurance in connection with any of these goals, as investments assume a specific life expectancy and that income will contin...

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