Reji Valiyakala from New York Speaks on the Importance of Life Insurance

Life is a series of unpredictable events—be it financial crises or the loss of a loved one, such challenges can deeply affect us. Life insurance is one essential tool that helps us face such uncertainties. Reji Valiyakal (Joseph V. Thomas), an agent with Allstate Insurance in New York and a veteran with over 30 years of experience in the insurance field, speaks about the significance of life insurance.

 Financial Crises and the Role of Insurance

 Global pandemics like COVID-19 severely impacted people’s income. Many families lost their livelihoods either due to job loss or the death of the sole breadwinner. Reji refers to this as “financial death.” While physical death is inevitable, financial death can be prevented with life insurance. 

For instance, in a family where only the husband earns and he passes away, the family might have to rely on fundraising platforms like GoFundMe. In such situations, for everything from funeral expenses to children's education, they may become dependent on others or charitable organizations. This is where life insurance plays a crucial role—providing financial support to help the family carry on with their lives.

Who Needs Life Insurance?

 Life insurance is most important for those who do not have sufficient wealth or assets. In their absence, it provides vital financial support to their dependents. Reji notes that for many Indian Americans, the financial pressure may be less severe due to government aid and professional jobs, but life insurance is still important. 

Life Insurance: A Necessary Need 

Even a millionaire may manage without life insurance as they can afford sudden expenses. But for the average person, even if they have a house or savings, it may be hard to arrange funds quickly in an emergency. 

Life insurance provides fast financial support, especially when selling assets takes time.

 Affordable Term Insurance 

For those who are new to the workforce, students, or individuals with lower income, term insurance is a practical option with very low premiums—sometimes as low as one dollar a day. After five or ten years, these policies can be converted into whole life insurance or universal life insurance, offering lifelong coverage and cash value benefits. 

In the event of a death in the family, simply providing the policy number is enough for the claim process. Term insurance helps cover all expenses, making it essential for everyone. Other Types of Insurance Policies Auto Insurance: Mandatory Home Insurance: Required if there is a mortgage Personal 

Umbrella Policy: 

Offers extra coverage beyond the limits of auto or home insurance Commercial and Business Insurance: For professional and business needs Within life insurance itself, there are multiple options such as fixed life, variable life, and term life insurance.

 Car Insurance Plans and Lockdown Benefits 

A common question about auto insurance is how much coverage is really needed. Many wonder whether the state’s minimum coverage is enough to legally drive. While it may be sufficient under law, it may not protect your assets if you are sued after a major accident. Expenses beyond your insurance coverage would need to be paid out-of-pocket, potentially leading to severe financial strain. If you own significant assets like property or vehicles, lawsuits can jeopardize them. Having higher coverage protects against such risks. Courts can even seize assets in legal cases. During the COVID lockdowns, fewer cars on the road led to fewer accidents, benefiting insurance companies. Companies like Allstate returned a portion of premiums to customers, which was well received. 

Personal Umbrella Policy 

A personal umbrella policy offers an additional layer of financial protection beyond standard insurance. It acts as a "shield" over your existing policies. For example, if a homeowner or their child causes injury to someone else, and legal action follows, the umbrella policy helps cover the extra costs. To qualify, your home and auto insurance must already include a certain level of liability coverage.

 A Message to Those Without Life Insurance 

Despite the many deaths during the COVID crisis in New York, families with life insurance did not face financial hardship. Though death is painful, the financial support provided comfort to those left behind. Reji Valiyakal urges everyone to invest in life insurance. He emphasizes that for anyone who loves their family, life insurance is a must. In a world full of uncertainties, life insurance is a vital component of financial security. It is both an investment in your family’s future and a protective shield.