A Strong Foundation
Outlook Money|August 2017

Make life insurance count by taking the right policy at the right stage in life and for the right quantum of cover.

Preeti Kulkarni
A Strong Foundation

When it comes to life insurance, most Indians possess a policy because life insurance still turns out to be the first brush with financial instruments for many. But dig deeper on the quantum of cover and you may find the average sum assured to be a few lakhs at best, with many being grossly under insured. Although everyone knows that death is inevitable and that life insurance is a necessity to provide for financial dependents, people put off taking a policy or take one for the wrong reasons.

With these facts, when you meet Mumbai resident Vishal Paleja, 37, a father of two, you will be surprised to note his clear thinking with life insurance. “I chose a term cover, as my first priority is to secure my family,” he states. Paleja,who runs a garment business, explains that the type and amount of cover was arrived at after a need analysis, factoring in his work profile, responsibilities, goals and cost-benefit study. “There are endowment policies, but they have high premiums for a similar cover and do not meet my needs,” stresses the astute businessman. His protection cover comes at a cost of `18,000 a year.

Welcome to a situation where several Indians are embracing life insurance with a clear view of taking it as a protection than taking it as a savings and investment tool. “Take the cover at young age and when you are in good health, since you may not get the cover at later stage or might have to pay a hefty premium for pre-existing diseases such as hypertension or diabetes etc,” advises Mimi Partha Sarathy, managing director, Sinhasi Consultants. Yes, it does get expensive if you postpone the decision to take a life insurance policy beyond a certain age.

Size and type

Esta historia es de la edición August 2017 de Outlook Money.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición August 2017 de Outlook Money.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE OUTLOOK MONEYVer todo
Stay Ahead Of AI-Powered Cyber Fraud
Outlook Money

Stay Ahead Of AI-Powered Cyber Fraud

AI has become an integral part of our lives, right from customer service at banks to insurance claims. But it has now become a powerful arsenal for the fraudsters too who are increasingly using AI to scam individuals and corporations alike to commit fraud. The key is to stay vigilant

time-read
7 minutos  |
December 2024
Travelling To Europe? Pack In The Essential Covers
Outlook Money

Travelling To Europe? Pack In The Essential Covers

Smart travellers must know that insurance is a must-have. From essential health coverage to theft protection and trip interruptions, know what you need for a worry-free Europe trip

time-read
6 minutos  |
December 2024
How To Spend Wisely This Year-End
Outlook Money

How To Spend Wisely This Year-End

We all spend during the year-end. But the trick is not to overspend or borrow, either from friends, or your own investment, to fund your indulgence. Maintaining balance is the key

time-read
5 minutos  |
December 2024
Travel Now Pay Later (TNPL)
Outlook Money

Travel Now Pay Later (TNPL)

Travel now, pay later (TNPL) is a close cousin of the more popular buy now, pay later (BNPL) schemes.

time-read
2 minutos  |
December 2024
12 Books Devina Mehra Loved Reading In 2024
Outlook Money

12 Books Devina Mehra Loved Reading In 2024

Listing books of her choice, among the ones she reads during the year, is ace investor Devina Mehra's favourite year-end activity. She says it's a daunting task to pick around 12 books from a list of 50.

time-read
6 minutos  |
December 2024
Here's How To Avail Of Ayushman Bharat Yojana
Outlook Money

Here's How To Avail Of Ayushman Bharat Yojana

Launched in 2018, the Ayushman Bharat Yojana aimed to provide health coverage to targeted benefi ciaries from the Socio-Economic Caste Census (SECC) 2011, based on deprivation and occupational criteria.

time-read
2 minutos  |
December 2024
'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'
Outlook Money

'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'

Professor Sanjay Bakshi, a value investor, behavioural economist and adjunct professor at Flame University, Pune, gives his unique perspective on how to choose a stock, in an interview with Nidhi Sinha, editor, Outlook Money, as part of the Wealth Wizards series. He also shares his learnings from role models Warren Buffett, Charlie Munger, Benjamin Graham and others, and how being a chartered accountant, economist, investor and teacher make him into what he is today. Edited excerpts from the interview

time-read
10 minutos  |
December 2024
The New Trump Card For IT, Pharma
Outlook Money

The New Trump Card For IT, Pharma

Donald Trump has been re-elected as the 47th President of the US after a gap of four years. Here's how it will affect the Indian markets and how it will benefit sectors such as IT, pharma, export-oriented sectors and others

time-read
8 minutos  |
December 2024
European Sojourn
Outlook Money

European Sojourn

Tight on budget? Dump the popular European destinations for the little-known wonders that are equally attractive

time-read
10+ minutos  |
December 2024
Gold ETFs And FoFs
Outlook Money

Gold ETFs And FoFs

While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.

time-read
2 minutos  |
November 2024