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10 thoughts on “Of course, you don’t die. But what if you die?

  1. My problem is what I do not die and survive for long?
    In this rapidly growing inflationary world difficult to estimate future amounts, even we can, different to provision that amount for future needs.
    Insurance/annuity cost is growing more than the current earnings!
    exmaple: if I want 10,000/- after 10 years monthly, I need to save more than 10,000/- now…some times looks ridiculous.
    I personally feel to override this kind of this situations, let everyone in the family earn and look after themselves!
    Ofcourse, Not against to insurance 🙂

    1. 🙂 agree. Living longer is a bigger threat than dying. And the investment should be in inflation linked investment. Investment in fixed interest doesn’t protect you from long term inflation. I don’t think this issue is recognized adequately by people. There are no adequate savings for retirement.

  2. Dying too early is a problem and Dying too late also is a problem from financial perspective. The earlier death may lead to financial trouble to the family in the absence of /inadequate insurance protection cover. Living too long also may Stretch the Financials of individual in the absence of/ inadequate regular income in the form of an annuity. Death is certain and the uncertain is timing of death ( it is a random variable from Statistical point of view)

  3. Cover 5 times more than the annual income + loans doesn’t seem to be very costly. Only thing is, one shouldn’t go for an endowment policy but should go for term policy. Also LIC term policies seem to be 2 to 3 times more costlier than the pure online counterparts. The fear people have with online policies is, these companies are not reliable and try to escape during the actual claim.

    1. Siva
      Insurance plans should be based on Need Analysis of the individual and it varies from individual to individual.
      Suppose somebody wants not only the insurance cover but also the upside gains from his regular savings Kitty with a long term horizon then he may go with endowment par or ULIP plans. In fact, nowadays ULIP plans are much more attractive to customers compared to few years back.
      So in a nutshell, we can not compare which plans are good.

  4. @Suresh, as a customer, I lost my faith on ULIPs because of the massive mis-selling that happened around them. Also, when there are more specialized companies to maintain mutual funds, why to give that to an Insurance company? The same question arises around endowment policies. Isn’t it simple to take term and invest the rest in even in large cap MFs so that you will have liquidity and greater control on your money? These are a very fundamental questions not only me, but many having little knowledge about these policies ask. If there is any real merits to take these policies, then probably there should be an independent platform that provides a good comparison of these to educate the policy holder (not policy bazaar kind of tool that makes once life horrible after giving the mobile number).

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