Lakshmi KC. Human life is full of uncertainty. At any time, there can be an unexpected accident, disease or financial crisis. In such times, the financial security of the family is very important. Life insurance is a very important tool for that. Life insurance is an arrangement to secure the future of us and our family financially. It helps in dealing with uncertain situations.
Life insurance is a much-needed safety measure related to human life. This protects people from uncertain economic risks in the future. However, awareness about life insurance in Nepal seems to be at a relatively low level.
Life insurance is not just a financial instrument, it is a family’s future security, career stability and respect for the value of life. We often do mandatory insurance to bear the risk of vehicles, but why ignore the value of our lives? Life insurance is an essential requirement for the family.
Everyone has an important role to play in spreading awareness about life insurance. We should understand the importance of life insurance ourselves and make a safe plan for the family. At the same time, we have to inform others about insurance.
Many people do not fully understand life insurance and what its purpose is. Many people think insurance is just a plan to get money after death.
The awareness of life insurance in educated people seems to be somewhat good. Due to lack of financial literacy, many do not understand the long-term benefits of insurance plans.
In Nepal, the Insurance Authority is conducting programs at various local levels to spread insurance awareness. Insurance companies have also been conducting insurance awareness programs to support the insurance awareness campaign of the AUTHORITY. However, insurance awareness has not yet been effectively communicated.
Although private insurance companies have emphasized on insurance promotion, it seems that it is often only business-oriented. There is still distrust and confusion about insurance in rural areas. However, if life insurance is adopted by everyone, then it will benefit us if we are in the future and our family if we are not. Therefore, insurance is very important for everyone.
Benefits of life insurance
Financial Security: Life insurance will protect your family from financial crisis after your death. It acts as an alternative to your income and eases the daily life of the family.
Protection of education and career: Life insurance after your death will prevent your children’s education and future careers from being affected. It avoids the economic burden in the future.
Support for old age: Life insurance acts as a regular source of income in old age. Which makes you free from dependency and anxiety.
Tax exemption facility: Life insurance premium in Nepal offers tax exemption of up to Rs 40,000 annually. Which reduces your tax burden.
After completion of 2 years of insurance policy, you can get a loan by pledging the policy. Which helps to meet the immediate financial needs.
Life insurance is an economic safeguard. Which helps to protect against future difficulties. Education, publicity and potential efforts are needed to raise its awareness. Only this can make our society financially strong and secure.
Kc is a senior agency manager at LIC Nepal’s Bhairahawa branch. )
