Life Insurance Simplified

5 Everyday Things That Cost More than Term Life Insurance

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“I would do anything to protect my family”, Sujeet said to his friend Akhilesh in a weary tone.

“Why you are getting worried Sujeet? OK. Tell me how much you spend in a day’s lunch or dinner?”

“Rs 1000-2000?”

“So to your surprise there is something which can take care of your family’s needs in your absence in less than Rs 1000 per month!”

Sujeet then asked surprisingly, “Can you please tell me how it is possible?”

Akhilesh replied, “A term life insurance is one of the most affordable ways to give your family financial security in case of your sudden demise.

To put the true cost of term life insurance in perspective, here are 10 products or services that cost more than a term life insurance premium (The premium for a healthy 30-year-old is just Rs 700/month).

  • Alcohol Being an occasional drinker you almost spend Rs 3000/- in alcohol.
  • Tobacco For households with smokers, a large amount of your incomes are spent on cigarettes.
  • Electronics That new 55” LED TV that costs Rs 50,000/- could be used to cover about five years of premiums.
  • Gadget Depending on which version you get, an iPad costs around Rs 100000 with taxes, almost three and a half years of premium payments.
  • Entertainment A pair of movie tickets, popcorn, and a drink can cost you up to Rs 2000/-”

Sujeet then replied, “Yes. You are absolutely right Akhilesh. I never thought of it.”

Akhilesh then said, “Exactly, Sujeet. I own a term life insurance at a price I am happy to pay each month and it requires little sacrifice to my budget. And the icing on the cake is the better half benefit it provides, under which it covers my wife too. If something happens to me then she will get covered under the same term plan with 50% of my life cover. The plan is Edelweiss Tokio Life – Zindagi Plus.

Saving money and funding your Term life insurance doesn’t have to make your life miserable. In fact, the average cost of term life insurance is so low as compared to your overall budget, that even small concessions such as minimizing waste and limiting frivolous purchases can open up your budget enough to buy a much-needed financial tool.

Ultimately, the peace of mind and pride of securing your family’s financial future will outweigh any temporary pleasure from a materialistic purchase.”

“Thanks Akhilesh for being a good friend and advising me to buy the term plan you have opt for.”

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