Term Insurance First….Then The Rest

Nov 03, 2017 | 12 months ago | Read Time: 3 minutes | By iKnowledge Team

Now what is all this ‘gyaan’. Am quite a ‘social media’ shy person, never going out there and writing, with ‘sleeping status’ on the few ‘WhatsApp’ groups I am on, and virtually a dormant spectator on other platforms. I have been working in Life insurance for more than a decade now and the moment of truth has been the ‘sense of purpose’ that I see in protecting families. So the topic of Financial Protection is a topic I can’t resist writing about.

It’s a boring subject and no one wakes up in the morning thinking ‘I’m dying to buy life insurance today!’ It is not a fast moving consumer good or a sleek mobile that will catch your fancy, but it is indeed the first step of the financial plan of a bread-winner, which is very important but often skipped, delayed, forgotten, you name it.

So, as an individual wanting to give meaningful advise to my family, friends and society at large as a well-wisher, I will take up the task of spreading awareness about life insurance.

We cannot take our families for granted. While the chances are close to 99.9% that I will be happily with my Family for years to come until I am very old, I have still protected my Family against the 0.1% risk of a life threatening event occurring to me. And how did I do it? Well, by casually providing 10 times my annual income in case I were to go. But how? Plain and simple, a Term Plan.

Most of us who buy life insurance, end up buying a savings insurance plan. Savings insurance plans typically provide a life insurance cover up to 10 times of the premium paid, which in most cases translates to a life insurance cover of less than 1 time the annual income of the life insured. This is practically ‘no insurance’.

As a thumb-rule, your dear ones should be compensated with at least 10 to 20 times the annual income of the bread-winner to provide financial security for their future needs for several years.

I understand there are typical objections and concerns why some people do not buy ‘Term insurance’ or procrastinate buying.

What do I get if I don’t die?

We can all agree that Life is more important than a car. So, if we are willing to pay Rs. 20k for a motor car insurance cover for a Rs. 10 lac car, why aren’t we willing to pay the same Rs. 20k for a Rs. 1 crore life cover?! In both cases you don’t get a return if you don’t crash your car or die, respectively.

It’s an absurd question anyway…

We just need to change our outlook. Family is our priority, and yet we are taking their financial future for granted. Claims are paid by life insurance companies every day for untimely fatalities, with the bulk of those people aged between 25 to 55 years. None of these individuals wanted this to happen, to them or their families, but this is nature’s reality that we live in, with this 0.1% risk and this is the very real risk and need life insurance addresses.

When my time comes to leave the earth, I would rather say ‘Thank God Maine Term insurance liya hai’ and not have to worry about saying ‘Oh God Kaash maine Term insurance liya hota’. Which would you rather be? I hope for you and your family that you would want it to be the first.

When someone asks you what you can do for your family, we say we can do this and we can do that and we would die for them! But wait! Before you die for them, just make sure you have your term insurance.

Go out there and spread the word. Let’s Insure India and let’s make our country financially Future Fit.

Giving a few lines with a rhyme below to put across the thoughts with some fun:

One might think, another post that is here to give some ‘gyaan’

But trust me, this post is here to gather your ‘dhyaan’

Towards your Family which matters You the ‘most’

So please go ahead and take an adequate Term insurance cover (if you do not already have one), immediately after your read this ‘post’, my ‘dost’

For those of you who already have Term insurance, to you I raise a ‘Toast’

This is one thing you can be proud to ‘Boast’,

So that other breadwinners with inadequate insurance learn from you, that there is not much we can do for our family once we become a ‘Ghost’

Source: Rajeev Chugh, CFO – Aegon Life – Linked In


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