14/01/2014
INSURANCE: Insurance has various importance but firstly we have to understand the necessity of insurance. Let us take a case study to understand its closer view.
Case Study:
Ajay is 30 years old and works for a MNC(Multinational Company ).He has a ten-year-old son, whose dream is to become a doctor. Ajay’s spouse is a housewife, and his parents are retired and dependent on him. Ajay has a home loan and car loan which is currently running and along with that he is making investments for his son’s higher studies and marriage and his own retirement. Ajay is balancing all very well with home loan and car loan and giving high standard of living to his family.
One day while returning home from the office, some misshaping happens and Ajay is no longer able to earn. Then, Who will take care of the family, his son’s education and marriage, the home loan etc? What are the options available for Ajay so that his family can be taken care of in his absence?
Now put yourself in Ajay’s shoes and imagine you are the only income provider for the family and have to face the above scenario, What will you do? Relax! My intention is not to panic you. I am giving you this case study to help you realize the importance of insurance .
Let’s look at the scenario again and see how insurance can provide a solution.
If Ajay has adequate “Term Insurance Plan” (This plan has very less premium and gives higher returns) for his Car loan and Home loan then the insurance company bears the whole loan in his absence. If Ajay has adequate life insurance cover, then the money received from the life insurance company can help to support his family. The insurance money will help to take care of family’s living expenses, his son’s education etc.
In below diagram, I have just tried to put the above scenario.