Yashodhan ProServe

*Life insurance = income replacement, not investment.*

You buy it because your family’s financial freedom shouldn’t die with you. If you have dependents and debts, you need it. If no one depends on your income, you don’t.

*1. Replace your income so family’s goals don’t die*

*Problem*: You’re gone. Salary stops day 1. But expenses, EMIs, school fees, retirement planning for spouse – all continue.

*Example*: Age 35, ₹15L/year income, ₹50k monthly expenses, ₹30L home loan, 2 kids aged 5 & 8.
If you die tomorrow without cover:
- Home loan EMI ₹28k continues. Bank takes house in 3 months.
- Kids’ education goal ₹50L dies. They drop out or take education loan.
- Spouse retirement corpus never gets built. She works till 70.

*With ₹1.5Cr term insurance*:
Claim money covers loan + invests rest. At 7% FD, ₹1.2Cr gives ₹7L/year = ₹58k/month. Family maintains lifestyle + goals continue. Your SIPs stop, but goals don’t.

*Rule*: Financial freedom for family = Assets + Insurance > All future liabilities + goals. Life insurance fills the gap.

*2. Clear all liabilities instantly – don’t pass debt as inheritance*

Debt doesn’t die with you. Bank recovers from your assets or forces family to sell them.
Liability What happens without term cover With adequate cover
**Home loan ₹40L** Spouse pays EMI or bank auctions house Claim pays loan. House stays with family.
**Personal loan ₹5L** Recovery agents call family Closed immediately
**Credit card dues** Legal notice to spouse Settled from claim
*Freedom definition*: Being debt-free. Life insurance ensures your family is debt-free even if you’re not there.

*3. It’s the cheapest way to buy peace of mind*

Term insurance = pure risk cover. No returns, no maturity. That’s why it’s cheap.
Age ₹1Cr Term Cover, 30 yr term Cost/year Cost/day
25 ₹8,000 ₹22/day
35 ₹12,000 ₹33/day
45 ₹28,000 ₹77/day
*Compare*: ₹1Cr term at 35 costs ₹12k/year.
₹1Cr traditional endowment plan costs ₹4L/year and gives 4-5% return.
For financial freedom, keep insurance and investment separate. Buy ₹1Cr term + invest ₹3.88L/year in mutual funds. In 20 years you hav