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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.)

The Beauty of Inconsistencies

Curiouser and curiouser!— Cheshire Cat, Alice in Wonderland.

When we hear the word ‘Wonderland’, we imagine bursts of colour, endless joy and perfect harmony. For some, it is a fantasy; for others, it is home. Every individual carries a personal version of this wonderland. Ask a four-year-old girl, and she may describe a land of candies and laughter. Ask an elderly man, and he may picture a quiet house filled with his children and a sense of peace.


For me, wonderland once meant continuity — a place without pause, filled with exploration. As a naïve child, this idea awakened a traveller’s spirit within me. I longed to see the world, absorb different cultures, and listen to stories beyond my immediate surroundings. When travel was not possible, I travelled through books. My shelves were lined with journals and hand-drawn maps, and my heart carried a constant wish — to step into that mesmerising world.


With gratitude, I admit I have travelled more than many people my age. I seized every opportunity, persuading my parents through occasional arguments, determined to explore as much as possible. When they agreed, I felt like a butterfly emerging from its pupa, ready to stretch its wings. Though we have an untold understanding within us about planning our tours!


As I grew older, I visited parts of Europe — France, Italy and Germany. I was convinced I had found my wonderland. I had woven vivid images of these places in my mind and could not wait to experience them.


I still remember the thrill of inhaling the crisp air of Paris. Anticipation hung in the atmosphere. We took a bus to the Champs-Élysées, where I caught my first glimpse of the Iron Lady. Walking around the Eiffel Tower gave me a towering sense of how small I am in this vast world.


The city’s vibrant energy pulsed through me as I wandered along charming streets and cafés. Every turn revealed something new. And the food — warm croissants and rich beurre blanc — felt indulgent beyond measure.


I met countless people. A couple even invited me to tour with them, and though tempted, I declined. I sensed a certain urban sophistication, almost distant in its refinement. For the first time, I recognised how effortlessly warm Indians are. There is comfort in our familiarity, in the way we connect.


From Paris, we travelled south to the French Riviera. The terrain transformed into deep-blue waves and rocky beaches. Tiny lanes held hidden bars, and the scent of sourdough and freshly baked pizzas drifted endlessly. The fashion was flamboyant, the accents distinct. Yet, there was a noticeable aloofness. I wondered about this pride until I turned toward the pristine white shores. Perhaps beauty breeds confidence.


All the while, I observed with a critical eye. Europe was immaculate — clean roads, precise systems, polished manners. Everything stood perfectly in place. Yet something unsettled me. The perfection felt almost intimidating. The sophistication, though admirable, created distance. Every sight was breathtaking, yet somewhere, it lacked warmth.


In my heart, I missed the inconsistencies.


I thought of India — chaotic, vibrant, layered — and profoundly beautiful in its own way. I realised how often our youth undervalue this country, racing to escape it. I would urge them to see the world first. Experiencing differences only deepens appreciation for one’s roots. Like Alice stepping out of Wonderland, I understood my own home better after leaving it.


Soon after, I visited Jaipur, Agra and Varanasi — cities steeped in culture and history. The aura felt raw and authentic. Strangers seemed familiar; exchanged glances carried warmth instead of distance. Despite our diversity, we are deeply connected.


India is imperfect, yes. But its imperfections breathe life.


Here, people bond over a simple cup of chai. Status dissolves in shared laughter. Conversations flow without guarded restraint. There is spontaneity in our chaos, resilience in our struggles, and generosity in our hearts. We nurture before we judge. We celebrate loudly, grieve collectively and live passionately.


In many developed nations, systems function flawlessly. But in India, emotions function powerfully. Relationships matter more than rules. Hospitality is instinctive. Even amid noise and disorder, there is belonging.


Perfection may impress, but imperfection connects. The uneven roads, the overlapping voices, the unpredictable rhythms — they form a symphony uniquely ours. They remind us that life is not meant to be sterile or symmetrical. It is meant to be felt.


Travel taught me that Wonderland is not a flawless place. It is where your heart feels

understood. It is where warmth outweighs precision, and where shared humanity matters more than polished appearances.

And for me, that wonderland is India.

That is the beauty of inconsistencies.

That is the beauty of India.


(The writer is a travel enthusiast. Views personal.)

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