Life Insurance

Yes, there is a right time to buy life insurance. Over the years, insurance experts have zeroed in on a simple rule of thumb:

Do you worry about HR's tax email every year? Are you one of those who hurry to make tax-saving investments at the last minute? Relax, you’re not alone. But even you have to agree that worrying about tax every year is really not an ideal place to be in.

The heart attack that killed you came without a warning.

Frankly, you can’t apply the one-size-fits-all approach to determine the amount of money that is required to lead a peaceful retired life. People have varying spending habits and their financial responsibilities at the time of their retirements are also very different. However, there is a way to determine the amount of money that an average Indian individual needs to enjoy his/her golden years with financial ease.

With life expectancy in India touching 80 – 85 years, retirement planning takes on a whole new meaning. While generations before us had to plan finances only until 70, the current generation has to plan finances for at least 20 – 25 years after retirement.

As the reader knows, typical term insurance plans are pure life plans. The pay-outs are given to the nominee on a single condition, that is, if the policyholder passes away while the policy is active. This means that if you own a term plan, claim can only be filed if you are no longer with your family.

It was raining heavily that morning. Namita tried persuading Prakhar to skip work for the day and instead help her clean up the living room, which was awash with clutter from the previous night’s birthday celebration of their (now) one-year-old daughter, Ananya. But he had a very important meeting that day, on which his promotion depended. He quickly got ready, kissed his daughter goodbye, and promised Namita that he would be back half-day from work.

It is a tendency among Indians to go for maximum tenures when it comes to their term insurance plans. People want to buy term plans that will provide coverage well into their 80s! This is sheer lack of financial planning.