This means that to provide for his family and for his old age, he must continue to work until he can reverse the ratio get 90 per cent of his income from his monetary investments and only 10 per cent from his work. The creation of capital of such magnitude out of his savings, demands him to work continuously for years, which can be interrupted by certain unforeseen factors. Risk of living too long Living too long beyond his earnings period, where the expenses do not cease, is also an hazard where man without his own capital, has to depend upon others and, thus loses his dignity. Very often we find people who, it seems, as though have stumbled upon old age, before they have prepared to face it. Losses in unwise investments sometimes wipe away the entire savings.
Insurance alone permits planned old age provisions and the security against the loss of income.
It is well said that life insurance is important, not because somebody is going to die, but because somebody is going to live. In an unfortunate event of death, Life insurance creates that capital instantly for the survival of the dependents. Physical disability due to accident, while terminates income on the one hand, demands higher expenses on the other. Expenses in certain dreaded diseases, like heart surgery, and kidney replacement can be often debilitating, but specific health insurance plans have been designed to reduce the burden. Mediclaim insurance is one of the ways to provide for such eventualities.