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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Everything About Term Life Insurance

“Jo bachchon se kare pyaar, woh term insurance ko kaise kare inkaar!” If you love your family, term life insurance is indispensable. Financially securing your loved ones in the event of an untimely death is crucial, and term insurance offers this protection at an affordable cost. Protection, Not Investment Term insurance is the simplest form of life insurance. You pay a relatively small premium and receive a large life cover for a fixed period. Unlike endowment plans or unit-linked insurance...

Everything About Term Life Insurance

“Jo bachchon se kare pyaar, woh term insurance ko kaise kare inkaar!” If you love your family, term life insurance is indispensable. Financially securing your loved ones in the event of an untimely death is crucial, and term insurance offers this protection at an affordable cost. Protection, Not Investment Term insurance is the simplest form of life insurance. You pay a relatively small premium and receive a large life cover for a fixed period. Unlike endowment plans or unit-linked insurance plans, it does not combine insurance with investment. This separation is important. Insurance should protect your family, while investments should help you create wealth. Traditional insurance-cum-investment plans often provide modest returns that may struggle to beat inflation over long periods. For many people, buying adequate term insurance and investing separately through suitable mutual funds or other investments can be a more efficient approach. For instance, a healthy person in their thirties may be able to purchase a term cover of Rs 1 crore for approximately Rs 15,000 to Rs 20,000 annually, depending on age, health, policy tenure and other factors. Insurance Needed You should strongly consider term insurance if your spouse, children or parents are financially dependent on you. It is also essential if you have liabilities such as a home loan, car loan or personal loan. Even a non-working spouse may require life insurance because replacing the economic value of household responsibilities, childcare and family management can be expensive. To summarise, if you have loans or plan to take loans, have children or plan to have children, or have a financially dependent spouse or parents, term life insurance is an absolute must. Enough Cover A figure such as Rs 1 crore may sound large, but it may not necessarily be sufficient. The right amount should be calculated based on your family’s actual financial needs. First, estimate household expenses. If your family spends Rs 10 lakh annually and you want to provide for the next 15 years, you may require at least Rs 1.5 crore for basic living expenses. Second, add all outstanding loans. A home loan of Rs 35 lakh and a personal loan of Rs 5 lakh would increase the total requirement to Rs 1.9 crore. Third, include future financial goals. If your children’s higher education is expected to cost Rs 50 lakh, the required cover rises to Rs 2.4 crore. Fourth, provide an additional amount for your dependent parents or spouse. Adding Rs 20 lakh would take the total requirement to approximately Rs 2.6 crore. Finally, adjust the calculation for inflation. Inflation gradually erodes the value of money. To ensure that your family has enough to meet rising expenses, it is wise to add an appropriate inflation adjustment to each of the above steps, as necessary. Do Not Delay Term insurance is generally cheaper when purchased at a younger age and while you are in good health. Disclose all medical conditions, lifestyle habits and existing policies honestly, as incorrect or incomplete information can create difficulties during claim settlement. Life is uncertain, but your family’s financial security need not be. The purpose of term insurance is simple: even in your absence, your responsibilities should continue to be fulfilled. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Relentless blasting threatens Kharghar hills

Greens send SOS to CM

Navi Mumbai: Environmental groups and residents have urged Chief Minister Devendra Fadnavis to immediately intervene and halt what they describe as relentless hill blasting for a real estate project in Kharghar, warning that continued excavation could cause irreversible ecological damage and heighten the risk of landslides during the ongoing monsoon.


In a representation submitted to the Chief Minister, the NatConnect Foundation and the Save Kharghar Ecology Forum alleged that large-scale blasting and excavation have continued unabated despite persistent rainfall. The groups claimed that the pace of hill cutting suggests an attempt to flatten the biodiversity-rich terrain before regulatory intervention can take place.


The environmentalists argued that the Kharghar hills form an integral part of Navi Mumbai's ecological framework, serving as a natural water catchment, groundwater recharge zone, biodiversity habitat and climate buffer. According to them, indiscriminate destruction of the hills would permanently alter the region's natural landscape and weaken its resilience to rapid urbanisation and extreme weather events.


"Kharghar's hills are part of Navi Mumbai's ecological life-support system. We have already witnessed extensive damage from earlier quarrying. Allowing fresh blasting to continue will permanently destroy a landscape that can never be recreated," said B N Kumar, Director of the NatConnect Foundation, while appealing to the Chief Minister for immediate intervention.


Quarrying Activity

The activists pointed out that the latest excavation comes after years of quarrying activity behind Tata Memorial Hospital, which they said had already scarred large portions of the hill range. Instead of restoring the degraded terrain, another section of the hill is now being cut for a real estate project, they alleged.


Jyoti Nair, Green Building and Sustainability Consultant and Convenor of the Save Kharghar Ecology Forum, said the work has continued even during heavy monsoon showers.


"Blasting has continued unabated despite heavy monsoon rains, giving the impression that there is a rush to flatten the hills before effective intervention can take place. Every day of delay means more irreversible damage," she said.


According to the memorandum, residents have witnessed frequent blasting and rapid excavation over the past several days, with entire hill slopes being removed at an alarming pace. The groups contend that the hills play a crucial role in absorbing rainwater, recharging groundwater, preventing soil erosion, regulating local temperatures and supporting native flora and fauna.


Kumar, who also leads the Climate Action Now (CAN) initiative of NatConnect, stressed that these natural functions cannot be replaced through engineered solutions. "These hills are natural infrastructure. They absorb rainfall, recharge groundwater, support biodiversity and regulate local temperatures. Once blasted away, no amount of engineering can replace the ecological services they provide," he said.


Impact Assessment

The representation has sought an immediate suspension of all blasting and excavation activities, an independent review of project approvals, verification of compliance with environmental safeguards and a cumulative environmental impact assessment covering successive hill-cutting activities in Kharghar.


Expressing concern over public safety, Kumar warned that indiscriminate hill blasting during the monsoon could destabilise slopes and increase the likelihood of landslides. "Ironically, the very project for which the hill is being blasted could itself face geotechnical risks if slope stability is compromised. We seem to have learnt little from the devastating landslides in Wayanad and Irshalwadi," he said.


The environmental groups have appealed to the state government to act urgently, arguing that preserving the remaining Kharghar hills is essential not only for biodiversity conservation but also for protecting Navi Mumbai's long-term environmental sustainability and disaster resilience.

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