This Is Why Life Insurance Is Mandatory

Posted by amrina alshaikh on November 7th, 2019

Life insurance is a sensible investment option for anyone who can afford to pay the premium. It covers the life of the insured and there are other benefits too associated with life insurance plans. You should remember Edelweiss Tokio Life Insurance whenever you consider covering your life with an insurance policy. Edelweiss Tokio Life Insurance is well known in the market and with some information, you can go ahead and buy Edelweiss Tokio Life Insurance and remain rest assured of security for yourself and your family.

But a whole life insurance policy is not diversified. What you are doing is investing the entire corpus of your money into a single company. Whatever your money invested performs it performs only in one company. Edelweiss Tokio Life Insurance is slightly different. Here your money is diversified and it generates benefits for you apart from providing life risk cover. In a whole life insurance policy, you are at the mercy of the insurance company. You have no say in whichever way they invest your money. It doesn’t look transparent also because there is no tool to track the way your money is channelized. If the company goes bankrupt you are going to suffer and your money is stuck.

They say you should not put all your eggs in one basket. If the basket falls so do your eggs. If there is no diversification by the company it is like putting all the eggs in one little basket. Sometimes you are allured by a large and attractive return and that makes you slip your caution. But you should not be swayed by this or any other bewitching schemes or plans. You should apply your sense and you should take some expert advice from people who have knowledge and skills in this area.

You should not be misled by the calculations provided by the agents. You should do your own calculations and glean information from their papers as much as possible. You will find to your shock and surprise that the garden path they are trying to lead you up has many bumps and thorns. The percentage figure they try to project before you into the long future is not correct. They are not going to tell you about the inflation and how it is going to make a dent into your investment.

For the initial decade, you are sure to get a negative return. If you want to surrender your policy, you should know that there are surrender charges too that you are going to pay to form your pocket. You are also attracted by the feature of your being able to borrow from the company but you have to pay interest for the borrowing.

But, in the end, you must have at least one life insurance policy. You never know when death strikes.