Is Life Insurance Worth it?

Life insurance is a worthwhile investment for many reasons. The ultimate purpose of a life insurance policy is to give families the financial means to live on after the death of a loved one. Acquiring a life insurance policy also grants the main financial contributor of a family peace of mind knowing that if he or she were to pass away, the family would have a financial cushion waiting. In other words, buying life insurance is an effective way for a person, especially one who provides the financial support for a family, to prepare their dependents for the possibility of a sad event.

Life insurance contributes to providing a stable financial situation for the remaining members of a family. A family who experiences the death of its main financial contributor, is left to face the responsibility of debts as well as everyday expenses. Some examples of large debts may include a home loan, car payments and perhaps school fees. In addition, a family may need assistance with the costs of a funeral for their loved one. Taking a little time to obtain a life insurance plan can be the first crucial step in arranging the continued welfare of a family. Furthermore, it's important for a family to determine what its financial needs would be if it lost its main supporter. A family would then be able to select and buy life insurance that would suit its particular needs.

Insurance proves worthwhile and useful for yet another reason. Insurance gives peace of mind to both the family as well as to the person who is insured. Imagine one scenario. A family with several young children is dependent upon one person for financial support. If that person were to die without life insurance, the loss of the person's income would most likely be devastating to the family. Chances are, they would be left with several debts and other significant expenses to cover. By acquiring affordable life insurance a family is taking action to prepare for that possibility with a financial back-up plan. The sad loss of a family member shouldn't have to be accompanied by a unstable / insecure / precarious financial situation.

There is another practical aspect to buying life insurance. It allows the person who assumes the financial support of the family the opportunity to further his or her education, begin a career, or acquire a new skill. The individual would have the financial resources to better prepare for the role of supporting the family financially. An irreplaceable quality possessed by the best life insurance is that it grants people the time and freedom to make choices that will ultimately benefit their family.

A person who chooses a suitable life insurance policy with reasonable life insurance rates is helping to alleviate the possibility of financial uncertainty for their family due to a member's death. The simple act of getting an affordable life insurance policy quote can start a person on the road to providing for their family in a time of need.                                                                                                                             (Source: aarogya.com)


Ajit Vidyadharan
Certified Wealth Manager / Financial Advisor
Call: 9664966416

Protection of Wealth is more important than Creation of Wealth

Anybody can create wealth.
Anybody can become rich and wealthy.
Sometimes as a result of hard-work, sometimes smart-work, sometimes due to inheritance, sometimes due to luck...
Most of the times, most of the individuals whom we consider wealthy have become so because of their VISION.
When Swami Vivekananda was asked by a visually challenged person, "What is worse than being blind?"
Swamiji responded, "Not having a vision".
Vision is a destination, a long term imagination -- thinking beyond what the naked eye can ever see.

In terms of Wealth Creation and Protection, only a peson who has vision can truly protect his /her wealth.
When we have lot of wealth, the general tendency is to disregard it, blow it off as it there is no tomorrow. Paying little heed to savings, let alone investments and financial planning.

Yet, the rich and wealthy who continue to be rich and wealthy are the ones who had the vision to save and invest their wealth safely so that they could use it when needed and it could be passed on to generations in legacy...

Wealth that is not protected and invested for safety and ontinued returns and safety, is mostly lost in thin air.

Protecting wealth is a cumbersome procedure. It involves lot of R&D. It involves lot of planning. Lot of permutations / combinations. It involves lot of knowledge of the different savings / investment instruments, their related risks and returns, gestation period, charges involved, tax applications (pre & post), etc.

Over and above all these, Protection of Wealth involves "Knowledge of Self".

Financial Planning is a lot more about planning your life than planning your money.

To know more about your money and how to protect it, you need to know yourself -- Your life-style.
Your risk-appetite. Your current wants and needs. Your family's wants and needs. Your future wants and needs. The time-frame needed for your returns. Your aspirations. Your security. Your VISION.

And we all know, that although we are our best judges, we seldom know ourself fully and truly.

Thus, Protection of Our Own Wealth becomes even more difficult than earning the wealth.

Per global stats {Source: Scorpio Partnership - article in Hindustan Times 19 Sept. 2012, Mumbai}, the global wealth management industry is now paying $8 to generate every $10 of income.

So, if trained, specialist professional Wealth Managers take so much to manage your wealth, the writing is clear on the wall  -- Protecting Wealth is more difficult than Creating Wealth.

More in the next blogs on how to start knowing yourself to protect your own wealth ,,,

Ajit Vidyadharan
Certified Wealth Manager / Financial Advisor
Call: 9664966416