Page 33 - IC23 life insurance application

Funeral expenses - Death does not come very cheap. Medical expenses during the

last illness could be quite daunting. In the rural India, the expenses on the

community feast on the death of old man, have been known to be devastating to the

family finance. The option is often either to sell the family property or go for loan.

Relatives come with promises to help, but life insurance alone provides cash.

Mortgage liquidation - Most often house, car are bought as mortgaged property

and keeping them after the death of the breadwinner means paying for the

mortgage, in cash. Bank would not liquidate the mortgage on death. It shall be

liquidated only by payment of cash which life insurance provides.

Education of children : Education is not cheap today. Even the nursery education

costs a lot. Professional education can take away a substantial part of one's income.

The career of the children cannot be lost sight of, as they are the extension of the

self, fulfilment of one's dream. Unless provision is made for this it can become a

shattered dream.

Emergency - Emergencies keep cropping up. Social obligations, sickness,

celebrations, anything can make a demand on your cash and therefore you need a

cash reserve.

Retirement - Life continues after retirement. Needs do not get reduced, but get

increased due to failing health and need for assistance.

Government taxes : In our country, estate duty has been abolished. But creditors

on your property have to be paid. Road tax, electricity bill, telephone expenses shall

continue. Legal expenses relating to family property disputes may crop up.

Settlement problems are not unknown.

Copyright Dr Rakesh Agarwal Sashi Publications Private Limited

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010