Life insurance has been around for long. But if you don’t have an insurance, don’t be surprised, there are many in India who don’t have an insurance policy to their name. In fact, according to the Insurance Regulatory and Development Authority of India (IRDAI) report of 2017-18, the insurance penetration in India stood at 3.69 per cent, one of the lowest across the world.

The lower penetration and adaptation of insurance is baffling but what is not baffling is the importance and benefits of insurance, especially life insurance. The benefit is what makes it a must for everyone’s financial planning. The insurance policy helps a family breadwinner to transfer various sorts of risk and provides cover in financial emergencies. In life insurance, the family breadwinner can provide financial security to the family even in case of his/her untimely demise.

Financial planning allows us to be ready for financial requirements of different sages of life but it’s difficult to find a single solution for different requirements borne out of different life stages.

“Life Insurance is one instrument which plays an important role in your financial planning as there are varieties of insurance plan which are suitable for different needs,” said Tarun Rustagi, Chief Financial Officer of Canara HSBC Oriental Bank of Commerce Life Insurance.

“Topping this chart is Term Insurance, which is a must in everyone’s wallet as it will ensure the financial security for your family in your absence,” added Rustagi.

We all work hard to ensure a comfortable life for our loved ones but what eventualities hide if near future is impossible to predict. But life insurance is a product which will provide the security to our loved ones. It will enable them to lead the same lifestyle and have the same financial security, even in our absence.

“All of a sudden when you are gone money received (lump sum or regular income) from life insurance plans is there to support these needs and at least cover the financial gap, therefore its must for each and every one,” said Rustagi.

There are various options available under term plans such as return of premium, spouse coverage, money back options and other. One of the biggest benefits of term plans is their easy affordability.

But term plans are not the end of it. There are various other life insurance plans that would give you life cover and also take care of your cash flow needs in the future. Options like endowment and ULIP products provide other financial benefits apart from providing life cover. The best life insurance plan will vary basis the needs or goals of an individual.