05 reasons for you to have life insurance policy

Most of us have hatred towards life insurance policy, why? If you really ask for the reason, it is not the problem with life insurance; it is with the insurance agent, consultant, advisor, planner or broker (different companies call them using different names). I can remember an incident, where my boss received a call from an agent attached to a big insurance company in Srilanka, as soon as he finished the conversation; he was terrified and told “this guy repeatedly killed me to promote his insurance policy”. Also, some insurance agents are big time annoyance as they call and disturb you till you sign the proposal. This is where insurance agents go wrong and people start to hate life insurance.

This article is not to increase the hatred over life insurance and I am going to share few advantages of having a life insurance policy. I have experienced lots of real life situations which convinced me to obtain an insurance policy and pay the monthly commitment without fail.

Advantages & Benefits of life insurance policy

  1. Peace of mind – Most of the time people obtain insurance policy for the purpose of protecting their loved one. They want to have a financial backup to the family when they are not around. Life insurance will give peace of mind to the policy holder as his family has some sort of financial assistance when the policyholder is long-gone.
  2. Protection – Most of the life insurance policies are providing additional covers such as hospitalization, critical illness cover etc., we never know what our health condition will be tomorrow and insurance policy can provide the necessary financial cover when we are in need.
  3. Investment / Saving – Many people purchase life insurance as a part of their investments. Most insurance policies guarantee a fixed sum of money payable either on the death of the insured or at expiry of the policy period. It’s the best alternative to the conventional savings as you have to keep the premium aside and pay to enjoy the policy benefits.
  4. Flexibility – Life insurance policies are flexible and the insured can add or remove additional covers and manage the protection and premium throughout the tenor.
  5. Tax free returns – The maturity proceeds are exempted from Income Tax. Hence, investment in a life insurance policy is an amazing tax saving option.
Related Read  CRIB Srilanka - 03 Most Frequently asked Questions


  1. Complex – Insurance policies have very complex terms and conditions and it’s very difficult to understand.
  2. Low Returns – you will get very low returns to your investments compared with other investment options.
  3. Misleading – there are so many complex life insurance policies available in the market and selecting the suitable insurance policy heavily depends on the insurance agents, so finding a reliable insurance agent is the challenge.

I would like to advise all our readers to obtain at least one life insurance policy. you should have backup financial support for you and your family. Life insurance is not complicated to obtain for most people. The only vital part of it is to ensure that you understand the terms and conditions of the policy you obtained. This way, you will be able to protect your investment and your purpose of obtaining life insurance.

At advisor.lk, we committed to support  & advice each and every Sri Lankan to make correct investment decisions. Talk to us, keep in touch. Got any questions? Send us an email to ask@advisor.lk


Kathirnathan Ragulan

Kathirnathan Ragulan is the founder of advisor.lk and a serial entrepreneur, Business Consultant, Wealth Tech entrepreneur, Personal Finance & Debt Management Expert with over a decade of banking and investment industry experience.

Leave a Reply

Your email address will not be published. Required fields are marked *