Nepal | May 25, 2020

Life insurance: For a secure future

Sashin Shrestha
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Life is here for living, not just mere surviving. With life insurance one earns respect from siblings and life partners, peace of mind, state of fulfillment, freedom of living, and it also plays a role of a stress antidote

Insurance. Illustration: Ratna Sagar Shrestha/THT

Right from incubation, we human beings were confined on the teachings associated with surviving the journey of life. We are taught how to sit, speak, read, believe, behave i.e., overall how to be smart and fitting to the world just to survive. In this materialistic modern world there is little or null thing on living life, rather it’s only surviving that we can think of. When there is a materialistic discourse, the first thing that comes up in everyone’s cognizance is money. The one and only fantasy of human being is to net it, live life as one dreams and be financially free. There are two ways to make money; one is to work for it and other, the most imperative one, is to put your money into work which is to invest.

Investment is the word almost all of the living beings have in mind; some get it right with all the glitter and others get it horribly wrong turning to litter. Simply, an investment in economic terms is a monetary asset acquired with an idea that the assets will provide earnings in the future or appreciate in value to be sold at a higher price. Investment is the thing that will provide financial freedom that everybody longs for and one is believed financially free when one’s passive income exceeds all the regular expenditures. While talking about investments, everyone envisages sectors like real estate, stock market, derivatives or commodity markets and acquiring shares on private businesses. But amongst the crowd very few recognize life insurance as an effective and smart investment leading towards comprehensive freedom.

The fact is, life insurance is the thing that features lower in the priority list only to be followed by basic and lavish needs. For some, it doesn’t even feature in the priority list, though it ought to be around the top. The thing is, though we would like to think that “nothing will happen or it will not happen to me”, the fact is not so and none of us knows what the future has in store for every individual. For almost everyone, the first experience of life insurance is through family and friends who have acquired the insurance sales license from the life insurance companies. Instead of buying insurance it is actually sold to the insured; anyway, the insured is benefited.

As a person grows older, gets married, starts a family, has siblings, starts a job or business, the individual develops a sense of responsibility towards securing his or her family and their future. This sense of responsibility leads toward searching for various options and at some point of time, there is realization that life insurance is indispensable and fundamental to financial planning.

In Nepal, the term life insurance is made synonymous to the word double. It is said and heard that investment will double in fifteen years and so on. This is not a rocket science. It is simple mathematics as you get six per cent bonus every year. The investment will double in seventeen years. If the bonus rate goes higher, the duration shortens. There is a benefit as the insured is paying the premium or say investing in instalments rather than in a lump sum. But still people buy a life insurance for the reasons that are difficult to express. At the same time, the reasons are simple and obvious. That’s the thing about life insurance. The idea may be simple, but the reasons behind it are deep to the very core, that people instinctively realize the need to get insured.

In this calculative world, logic plays a vital role and decisions are mostly based on benefits and losses even though emotions play a final part. Life insurance is also marinated in between logic and emotion; the insured are always seeking for the win-win formula. But one may question if life insurance is something that can make you financially and emotionally free or is it something that is bestowed by the nagging insurance salesperson? While it seems like the latter is true, actually it isn’t, and there are numerous things that the insured can take away.

Smart life insurance planning ensures that emotional struggles aren’t compounded by financial constraint. And also the family’s future is too important to leave it to chance. Life insurance is about meeting the responsibilities and keeping promises to the family or oneself. It is about enjoying the moments while you are taking care of the loved ones. It is for those living after you, a way that one will express their love and care. It affords to meet the promises protecting the family’s financial future and maintaining lifestyles. Most of all, it buys time and options if in case one with life insurance passes away. The money received will provide some time to go forth fulfilling daily chores and plans for future options as well. The last, but not the least, life insurance provides the cash when it is most needed preventing the family from pondering in dilemma. Also, the insurance markets have ample terms of life insurance products that one can enjoy upon maturity and upon demise, the family will be free from financial hardship.

Life is here for the living, not just mere surviving. With life insurance one earns respect from siblings and life partners, peace of mind, state of fulfillment, freedom of living, and it also plays a role of a stress antidote.

Life insurance is bought as it is the best way to protect one’s loved ones and fulfill one’s commitments. It is an emotional and financial decision topped up with affection. It is about living life and enjoying it with a sense of the family’s financial freedom.

A version of this article appears in print on February 02, 2017 of The Himalayan Times.

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