Gift of Security

What does it cost to make sure that your family’s needs are taken care of even after you are gone? No more than a few thousand rupees per month.

This festive season, you will again be spending big sums on consumer goods—the new refrigerator or washing machine, a television upgrade or the new iPhone. You might also be looking at taking a loan to buy a home and a new car. That’s a lot of money you are spending. Not a worry, as long as you are around and have some 25-30 years of work-life ahead of you. In fact, you’ve likely planned to pay off all your loans in just a few years.

God forbid, the rains descend with vengeance (as they have been doing in many parts of the country off late), and the powerful winds uproot a tree, which injures many and leads to a few losing their lives. What if you had been among them?

The one thing we shouldn’t do in life, is to take it for granted. It can be lost in a second, and all your carefully laid plans can come to naught. What will happen to the outstanding loans? How will your family fend for themselves? These are questions to be asked now, before any such eventuality.

Ideally, you should set aside as much resources as required for your family to continue to enjoy the same lifestyle even after you are gone. Illustratively, if you are about 30 years old and wish to set aside a sum of Rs 2 crore, it will cost you no more than Rs 20,000 a year. That translates to less than Rs 2,000 per month. Not a big price at all for your family’s security and happiness.

So, this festive season, gift your family a happy future with a life insurance term plan. Term plans are ideal for securing your family’s future as they are pure insurance schemes and require minimal expense. Unlike several other insurance plans that offer a mix of investment and insurance, these don’t offer any payback on your insurance premium money.

Investment-cum-insurance plans are good only for those individuals who lack the discipline to invest their savings for the future and build a corpus for their future goals. This is because the amount you contribute as premium for insurance as part of any such scheme goes towards that purpose and the rest goes towards investment. So, your returns from the scheme are effectively the returns on the investible sum from your premium only.

While selecting the insurance company to go with, please do your homework. Opt for an insurer with a good track record of settlements and returns, if applicable.

Gift happiness to your family this festive season and live a worry-free life!

(A marketing initiative by Open Avenues)

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