You no longer need to rush home when it’s lightening, but never step outside your home without life insurance. Many citizens in India believe they don’t need life insurance. The common reason stated is nothing bad will ever happen to me. It will happen to someone else.
If you have dependents like parents, spouse or a child you need life insurance. India’s insurance penetration stands at 3.49%, which is far below the global average of 6.2%. Insurance penetration is the ratio of percentage of premiums paid to GDP (Gross Domestic Product).
This shows that you and many other citizens don’t care to avail life insurance or just don’t understand its importance. Not having life insurance especially term life insurance could mean leaving your family with no money, if something unexpected happens to you.
Term life insurance is a type of life insurance which gives financial protection for a fixed term on payment of a premium. If the insured dies within the term of the plan, a sum assured (lump sum) called the death benefit is paid to nominees. Death benefits are paid as a lump sum or a lump sum + periodic payments.
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If you want to know why you need term life insurance, read the book Love Beyond Death from the Founder of IndianMoney.com C S Sudheer. This book paints the real life story of a family residing in rural India. This book tells you about the unconditional love parent’s shower on their kids and how they sacrifice everything to give them the best in life.
This book comes with a sound message. Death can strike at any time. One person dies of a heart attack every 33 seconds in India. In India more than 1,50,000 people are killed in road accidents. You just never know which day is your last on this planet.
The settings of this book are the year 1980 and the small village of Kalmane in Karnataka. The book tells of Mahananda an orphan who was adopted by a widow when he was just 5 years old. After growing up, Mahananda became a known figure in this village.
This story revolves around Akash the beloved son of Mahananda and Sumithra. Akash, a very helpful boy, a trait he inherited from his father, was a very bright student who did well at school.
Mahananda loved his son and toiled for hours in the fields, in the burning sun or pouring rain to make sure there was money to send Akash to school. When other farmers advised Mahananda to force Akash to quit school and work in the fields, Mahananda would have none of it.
Akash was an exceptional student and not only topped the village school; he also topped the State in the SSLC Exams. Mahananda’s joy knew no bounds and he approached the moneylender in the village Bhandara, to give him a loan. Bhandara was reluctant but agreed on a condition that Mahananda would pay him high interest.
Akash was forced to do his PUC in a nearby town where he struggled initially as subjects were taught in English and he had studied in a vernacular medium school. But this did not faze Akash who was determined to do well. Long hours of study, hard work and determined impressed his professors who made time for him. Akash soon mastered English and topped the class. He scored well in the Second PUC Exams and secured 156th rank in the engineering entrance exams in the State.
Akash opted to study Computer Engineering and got a seat in National Institute of Technology, Suratkal. Once again Mahananda needed money, but the village postman asked him not to approach Bhandara. This time Mahananda approached a bank and the officer helped him get a loan, after pledging his property.
Akash excelled in Computer Programming and even developed software which helped village kid’s access to vocational training. Akash was among the first in his batch to get placed, and he was recruited in the 4th year of engineering by a reputed IT firm in Bengaluru, with a salary of a whopping Rs 6 Lakhs. Akash brought his parents who had done so much, to stay with him in Bengaluru. He also paid back all loans to Bhandara and the bank.
Akash soon became a star performer in the Company and his salary was hiked. As the Company expanded, Akash got an opportunity to work for a couple of years in the US. Akash saved a lot of money during his stint in the US, and when he returned to India he availed a home loan and bought a three-bedroom apartment in Bengaluru.
Akash, Mahananda and Sumitra settled in this lovely house and life was a breeze. Akash married his childhood sweetheart Kanya, a simple girl from his village who had not finished her schooling. Akash and Kanya were blessed with a son Yashas and a daughter Ananya. Akash and Kanya had big dreams for their children. They were admitted in the best schools, had fine tuition teachers and pretty much everything money could buy.
Everyone loves a rags to riches story and Akash had made it from rags to riches…but where does term life insurance fit in….
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This was a day with dark rain clouds in the sky and Mahananda had a premonition that something bad would happen that day. When Akash picked up his phone he found a missed call on it, called back, spoke animatedly and then rushed to office.
The car had been sent for repairs and Akash rode his bike to office. An hour passed and the phone rang. Mahananda put the newspaper aside and attended the call. Within seconds he collapsed on the spot.
Sumithra sprinkled water and brought him to his senses as Mahananda cried uncontrollably. Sumitra couldn’t understand what Mahananda was saying, but when the phone rang again, a colleague of Akash informed her that Akash had collapsed in the office after suffering a massive heart attack. Mahananda, Sumithra and Kanya rushed to the hospital only to see his lifeless body.
Soon their life took a turn for the worse. With the small sum of money Akash’s employer gave her, Kanya could not afford to pay home loan EMIs. The house was seized and auctioned and the money Kanya got soon ran out.
The car was sold and the family shifted to a small rented house. Kanya could not afford Yashas and Ananya’s exorbitant school fees and shifted them to Government aided schools. Kanya sold her gold ornaments to pay her children’s school fees, meet daily needs and Mahananda’s medical expenses. Kanya was forced to work as a domestic help.
The lives of Yashas and Ananya took a turn for the worse. They just couldn’t understand what had hit them. Yashas got into fights at school and his studies suffered. Ananya’s was constantly distracted in class and her scoring dropped.
Mahananda decided that the family must relocate back to the village and the children would study in the village school. Mahananda would seek a job with Bhandara as a driver. The wheel had come full circle.
Akash jumped out of bed sweating profusely, turned on the table lamp, and checked the time. It was 3AM and he realized it was all a bad dream.
Akash decided to do something so that the nightmare would not become real. He researched various term life insurance plans and learnt how a term life insurance plan works.
His Manager gave him the contact details of IndianMoney.com and they educated him on financial planning and investments. They provided him with details of agents and service providers in his locality based on his preferences.
After speaking to agents, Akash zeroed in on an insurance provider and a suitable plan. The agent visited him at his apartment and cleared his doubts on the term life insurance plan.
It was a day of new beginnings for his family as Akash signed up for the term life insurance plan and paid the first premium for a substantial coverage to take care of his loved ones.
Be Wise, Get Rich.
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