Though we have so many different types of insurance In the market which gives some sense of security but I guess Term Insurance should be on top of that list whenever we think of financial stability.

Term insurance is one of the essential tools to keep your family financially secure. When we talked about finance, one thing which people consider is investing money and that's true. Insurance is not a financial product but still having one should be in one's financial plan to help in some crisis.


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We all want to have a diverse investment portfolio and to have that we invest in Mutual Funds, Shares, Crypto, etc, which will actually create wealth for the future. But what if something happens to someone who was the one and only bread earner of the family, then this insurance guarantees the family member a financial path even in the absence of the policyholder. Most of the people in India considers Insurance as a waste of money, most of the people have to take the bike and car insurance for the sake of not getting challan, because they do not know the true value of insurance.

Recently, I have heard the news that in my village both parents have died in 10 days apart, leaving behind 1 son and two daughters have the age less than 20. Now the elder son has to stop his studies and start earning because they do not have income from anywhere else. Think about a scenario where if the parents would have the insurance, the children will continue the study and after studies, they can get good jobs. The monthly income would have been taken care of by the insurance companies. Most of the public and private companies have this scheme which will give half salary to the family, but again how many Indians do the white-collar jobs.

The Insurance does look like a costly affair, I am paying close to $200 per year which is too much for most of the people in India. But people who can afford it should have it because, with the insurance cover, a financial plan is on a stack of uncertainty. Insurance is of no use when you are single or when you have attained some financial status like at the age of 60. But I think it's best to have one when you have a family. I have taken my first term insurance when my daughter was born because that's when I needed the Term Insurance the most.

People get confused between term insurance and unit-linked insurance plans. The Unit Linked investment plans or endowment plans if not term insurance because it is a type of savings scheme where you get the money after the policy matures or in one's death. But the savings interest rate is quite low. If someone really wants to take the term insurance they should have pure term insurance whose sum insured is great. 


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