Life Insurance forms vital part of a sound financial plan because it enables management of personal risk & long term commitments & goals. Some important reasons why Life insurance is crucial are given hereunder:

• Debt Repayments - Repayment of Loans undertaken for purchase of house, car or for any other personal financial requirement are a financial obligation even in case of your unfortunate absence. Life insurance will help you pay off these obligations thereby leaving behind an asset as a legacy instead of a liability.
• Income Replacement - The absence of the sole income earner will suddenly place the dependents under extreme financial duress. Life Insurance provides the cash resources to the dependents to take care of the day to day living expenses & also ensure that the children get the best education possible in the absence of the bread winner.
• Maintenance of Standard of Living - The death of one of the earners in the family can jeopardize the long term financial & personal plans of the family. A life insurance policy will help to maintain the standard of living of the family & ensure continuity in the long term plans of the family.
• Medical Emergencies - Diagnosis of critical illness usually lead to sudden requirement of large amount of monies for initiating good quality medical treatments. Such medical emergencies may throw the family financials in disarray leading to either spending of savings or opting for costly personal loans. Critical illness rider of a life insurance plan ensures that suitable amounts of money is made available on diagnosis of specified critical illnesses & thereby enable the best medical treatment.
• Estate planning - Life Insurance are also apt investment tools for leaving an estate & therefore a legacy for your children/ grandchildren.
• Long Term Savings Creation - Regular savings are necessary to meet financial milestones like children's higher education, marriage, prepayment of outstanding mortgages etc. Life insurance provides a good avenue for creating a corpus of savings to achieve long term goals.
• Retirement Planning - Planning for your golden years will be the key to enjoying a comfortable, independent & a care-free retired life. Life insurance products can help you plan an adequate annuity to lead a comfortable retired life.

Life insurance policies are designed to protect you from the financial consequences of a disaster & also act as the tools for long term financial security.