Term Insurance

What’s more important? Your car or your life?

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Rohan was overjoyed when he brought his new Audi car. Out on his first trip with his wife Reena and 5-year old daughter Ira on Lonavala’s trip, the father in him was quickly flabbergasted because Ira had opened the dashboard and out of child-like curiosity asked daddy about the colourful insurance papers. Rohan clarified that they were intended to protect the car if by chance got stolen or damaged. It was then that Ira, innocently, asked him: “Consider the possibility that you get stolen. Will they return you as well?” This got Rohan pondering his life and what will happen to his family when he isn’t around. A car can be purchased once more, however what about his life?

Rohan had bought car insurance like many other people because it was mandatory but he didn’t opt for a term plan even after knowing that his wife and daughter totally depend on him. The point here is just as you protect the car against all damages by buying a car insurance cover, Rohan’s life needs to be covered too. Without him, the load of outstanding liabilities, daughter’s education, and his wife’s old-age would wipe out his family’s future. A term life insurance does just that. It is the one of the simple and most inexpensive type of life insurance that provides high cover at low rates. In the case of an untoward event, your family will not have to bear a huge financial burden because of the loss of income.

It’s all about realizing the importance of one’s own life. If we can spend to insure our car for every year, can’t we spend an amount to ensure that our family’s future remains financially protected? There are two things in common in both car insurance and term insurance that if nothing happens, there’s no claim at the end of the period. But that should not daunt someone from avoiding or procrastinating the decision to buy life insurance. It’s always better to be on the safer side rather than leaving things to chance.

The logic is really very simple that after spending Rs 4 lakh and even higher for a car, and after that on car insurance to drive around the roads peacefully. Do we realize that the real peace will come in protecting ourselves and our dear families. If you earn Rs 50,000 salary a month, you are worth Rs 6 lakh a year alone. With interest rates falling at a sharp clip to about 7%, today you would need Rs 85 lakh as fixed deposit to ensure your family gets Rs 6 lakh income a year. While a car insurance costs about Rs 20,000 to get cover for less than Rs 3.5 lakh for a year, an online term insurance policy costing Rs 10,000 can cover you for over Rs 1 crore. So, buying a life insurance gives you 28-30 times more the cover at about half the price! Isn’t it surprising? Have you ever thought of it? Just like how your car insurance secures you financially from damages to the car, Life insurance secures your family’s financial wellbeing if an unfortunate event of death occurs to you. Insuring your life with a term insurance is cheaper. It’s high time you wake up…Buy a term insurance before you start the car engine next time!

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