Take term insurance only…..
When I wrote in 2006 ‘you should take a term life insurance of Rs. 1 crore’ many people wrote to me saying:
– he must be a life insurance agent
– this is not for the middle class…how can we pay thousands of rupees premium?
– if we put all our INVESTMENTS in life insurance, what will we eat?
– how can I pay Rs. 2.5L per year as premium?
…..and many such comments (even now if you search for ‘If you died tonight what will your family do?) you will find many of the comments.
Even now the myths have not changed much….recently one kid in the office wanted to buy life insurance. I said ‘Go to the net, and buy the cheapest life insurance that you trust’.
He found Aviva at 7200 and many from various prices from 7200 to 45,000 Rs. premium per annum!
What followed was even better…another girl came up and said ‘What is he buying?’
I said: ” term life insurance”
she said: What sum assured?
I said: Rs. 1 crore.
She: OMG that will be Rs. 150,000 premium! is it not too much?
I said: No it is Rs. 7293 ONLY
she said: per month?
I: No dear girl, PER ANNUM…
she said ‘but my uncle just sold me a LIC policy of a premium of Rs. 25,000 and sum assured of Rs. 15 lakhs…why is there so much of a difference?
I: hmmm that we will discuss separately…
My uncle (change it to whatever you want!) told me this is the best policy and he is doing it for me…..what can I do..I have already paid 2-3 premia
Well grin and bear it, girl. Or damn your uncle – just drop the plan!
Not sure what she has done…..
Rakesh
Subra Sir,
Good one.. 7 years back i too bought LIC endownment and pension plans just for the sake of investments and was not ware of your blog. But since following your blog i have already made them paid-up.
Thanks for your selfless guidance as always…….
Rakesh
Parth
What if I do not die after buying a term insurance regularly for 30 years ? Premium paid for 30 years is waste? I think endowment insurance is better in this context.
subra
yes Parth, mera Bharat Mahan..
prabe
You have already found a reader in Parth. Who is still in denial mode( or was he sarcastic?).
Just like i said earlier we need more articles in media(both print & online) about term insurance and its use. I doubt that will happen any soon
Ashal Jauhari
@ Parth, which is more precious in your house, your life or your CAR or Vehicle? Do you know any vehicle ins. policy, which not only covers your vehicle for X years & after that pay you back some amount also?
I ‘ll wait for your reply?
Thanks
Ashal
Sameer
Good one Ashal….
casper
Subra, your answer … :-), i am rolling on the floor laughing at the situation. (btw no offense to anyone)
Gomathishankar
Sir, I have a term plan with aviva.now they have closed the pondicherry office and my agent is not picking my call.what should I do now.
CodeRed
LOL… goog one!
CodeRed
LOL… good one!
Dominic
@Gomathishankar: Call their central 800 number available in their web site
Parth
I was expecting such type of remark from someone, but not from author himself, on sarcastically made comment by me.
Subra ji, Bharat is a country of more than a billion people, living in villages, towns and cities like Mumbai, with internet accessible even in villages where your articles can be read and all these people having different needs and desires. I don’t know how many people read your articles other than those who comments here and for how many people out of this one billion you write. You may be writing for those people spending a large sum of their hard earned money on big EMIs for unnecessary Plasma TV, big cars, and many useless spendings. Yes from this point of view I am wrong And of course, mera Bharat mahan.
Alok
@ Parth: U r right in saying dat different people have different circmstances nd consequently different needs.
But actually its vry much required to make people understand the concept of Life Insurance or investment for that matter. Junta don’t undrstnd the logic or math dey juz focus on what’ll dey b getting after X yrs.
Infact i’ve come across the agents who themselves dont undrstnd d whole concept of LI. The need is to change their spectacles by which they look at it.
aclarke
Subra ridicules/satires everyone, Banker,Regulator,Financial Planner,Quasi Financial planner, Distributor,Insurer,Customer, Agent,AMC,fund manager,CEO,CFO,Rich,Poor,middle class,villager,urban guy,capitalist,communist, …. and last but not least the Blog Reader! (Blog Reader – the strange guy who wants all quality content and advice free and also feel entitled to it !! Will not understand or learn and most notably will *not* ACT on advice !! :-), Tries to portray a altruistic mindset sometimes, representing so called masses / “common man” ). Subra wont massage or soothe anyones ego as per i have seen. [My comment is not directed at anyone in particular, just a impromptu comment]
subra
good one aclarke …technically speaking one mistake..have never made fun of the villager…do not know him, so do not comment. Even the poor – i cannot see a pattern if I do not meet enough of them.
if i were the editor of a magazine, I would have to somewhere (liking or not) realize that my sal comes from the ad.
in a blog, there is no financial model 🙂 and sadly there are no financial magazines or websites willing to show the mirror to the “investor”………..
Parth
First of all, I would like to say why people always like praise only, why not accept criticism also.
Publish(I will not point out who) a very nicely prepared article on why to buy a term a insurance, and on the same page Give an pretty low premium term insurance aid, enticing people to at least think. I wonder who is commission agent… Sometimes I wonder everyone is fooling unsuspecting people in one or other way in the guise of free advices. Please don’t fool others, there is a good amount of quality content and free advices available everywhere on internet, TV, newspapers etc And who is commenting here on whose behalf…?
My comment is also not aimed at someone, it’s just an impromptu comment.
Parth
From today onwards this blog will not have a critical reader coz I never felt entitled to such blogs.
Parth
By the way i am an LIC agent.. who are you?
Rayan
Nice Post… and good comment from ashal……..