Page 32 - IC23 life insurance application

As a youngman starts his career and acquires his family, he invests his working

hours earning money. As the days pass by, he saves some money and invests.

During the early days of the career, he does not have much savings and therefore

the scope for his money earning money is almost negligible. However, over the time

as his savings increase, the ratio of his income from investment keeps increasing

compared to his income by investment of his time. It is well said that a wiseman

would so plan his life that by the time he stopped from investing his time either due

to retirement or disability, he should have built up his investment so well that the

money that would be earned by his saved money, would be enough to meet his

needs. Thus the life cycle can be described in short as an attempt to replace the

time earning money by money earning money. And this ordinarily needs a whole life

time.

But who guarantees the whole life time? The time available may be cut short by

many eventualities beyond one's control. The need is not limited to oneself. Need

for affiliation, esteem have brought in an expanding family and society and other

associations who look to him to satisfy their basic needs. Given a guaranteed time,

the life could be straight and uneven. But time being the most uncertain factor, the

role of life insurance becomes unique and life insurance alone can eliminate the

significance of time and guarantees that on death the position shall be reached

where money shall start earning enough money.

Let us emphasise on certain common needs. However, please do not forget, that

each individual is unique and he may be having special needs which must be looked

into.

Copyright Dr Rakesh Agarwal Sashi Publications Private Limited

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010