Why do I need life insurance?
Who will take care of my family if tomorrow something unfortunate happens to me? If this question bothers you, then Life Insurance is the answer. The only thing a man can buy on an installment plan, which his widow won’t have to repay after he dies, is life insurance. Of course, under any circumstances, the loss of a loved one is a traumatic experience, but if your family is also left without sufficient money to meet basic living needs or prepare for future goals, then they will have to cope with a financial crisis as well. A Life Insurance plan ensures that your family is financially secure even if tomorrow you are no longer around to care for them. When life or disability insurance is actually needed, it cannot be purchased at any price. Your wife may object to life insurance, but buy it for your widow. Do you think she would object it? Life insurance is not an added obligation, it's the best means of meeting the obligations you already have.
Need for Life Insurance as Savings
Today, there is no shortage for investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.
An Ideal Portfolio
There is no thumb rule for an ideal portfolio, it's unique as you are. For me an ideal portfolio is as shown here . This diversification gives me freedom. Freedom of Liquidity.
Property/Land - 40%, Gold - 20 %, Cash in Savings Bank -12 %
Fixed Deposits/Bonds -10%, Life Insurance - 10%, Equities - 8%