Life Insurance ....

“Life insurance” says Tim Maurer, Contributor to Forbes.com, “is one of the pillars of personal finance, deserving of consideration by every household. I'd even go so far as to say it's vital for most. Yet, despite its nearly universal applicability, there remains a great deal of confusion, and even skepticism, regarding life insurance.” According to Investopedia, “Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured”. This concept has now evolved offering many other options and facets to an insured, based on the foundational principle of paying a benefit to the beneficiaries or to the insured him/herself. Life insurance, ironically, therefore, cannot be emphasised without speaking of untimely death of a bread winner. The question “Can you speak about death?” might seem like a question off a scripted episode of a crime series. Inquisitiveness, however, it birthed in me to find out why speaking about death was so important, took me on a journey that to date I value as a key turning point in my life. Thanks to a few giants in the industry, our society is somewhat educated in the requirement of owning some amount of life insurance, per household. Not that each household is insured. According to the statistics of Insurance Board of Sri Lanka (2017), only a 30% of Sri Lanka's working population own a life insurance. According to the Labour Force Statistics of the Department of Census and Statistics, in the first quarter of 2017, the female workers accounted for 37.3% of Sri Lanka's total labour force. Whether it is in the Corporate jungle or in the rural areas, the fact remains, the women are a force, in the employment sector. This figure does not include the Sri Lankan female workers, overseas. Then, we have to talk about death and life insurance. What does it do, that we should so talk about it? Life insurance is owned so that in an untimely death to a breadwinner or one of the breadwinners of the family, the rest of the family could keep on living. This may sound a bit harsh to the ears that are new to life insurance but in the final analysis, an untimely death or a disability, whether total or partial, would require a sacrifice from the living. A child's dream for a good education, owning and living in the home they proudly possess and a few more of their aspirations may have to be shelved or forgotten, now that the household has lost it's breadwinner or become a singlebread-winner household. What does life insurance do? When we buy a well planned and well thought out life insurance policy and keep paying up the monthly, quarterly, bi-annual or annual premium, in the event of that untimely death or disability, the life insurance company will either pay the survivors or help sustain the disabled breadwinner with periodic payouts. Otherwise an insurmountable issue for that household, becomes a less of a burden, other than the emotional quotient of losing a loved one. Love, they say, is blind, but an untimely death is an eyeopener. One buys life insurance because one loves one's lovedones, from beyond the grave. If and when the policy owner survives and depending on the life insurance policy that he/she owns, the payouts and bonuses can be added to the savings or the investment portfolio, thereby ensuring that retirement need not be lived below poverty line. There are a number of insurance companies that offer the product called Insurance, whether it is Life, Term, Retirement Planning, Healthcare or Householders insurance. Broadly categorised as Life and General, it is a wise woman indeed that ensures her investment portfolio also holds a well thought out and well balanced insurance plan, primarily protecting her life and lives of those whom she holds near and dear to her heart. In the whirlwind that is a daily occurrence in our buzzing-busy society, insuring one's self may be thought of as a far away goal. The fact is, it should be a top priority on a To Do List of any working woman, whether, perched high on the corporate ladder, engaged in a profession, a government sector worker or a home-business owner. Insurance Board of Sri Lanka regulates the industry. There are many qualified professionals and trained men and women, who will present a plan to suit your affordability. We have presented the concept of insurance and professionals will give you the technicalities of what you need, according to your unique capacities and the dependents, who are so dear to you. List out your queries and questions, clarify when unclear, don't rush through to a plan that the Insurance agent feels is good for you. Agent explains and you take the decision according to what you can afford to pay out as premium, in the long run. Once you buy it, commit to pay. Be wise. Insurance-wise.

THE CONCEPT HAS NOW EVOLVED OFFERING MANY OTHER OPTIONS AND FACETS TO AN INSURED, BASED ON THE FOUNDATIONAL PRINCIPLE OF PAYING A BENEFIT TO THE BENEFICIARIES