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Say no to life insurance, say yes to trouble

HDFC Life | 28 Mar, 2013  | Follow Author | Add to my Favourites 
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I am an independent financial planner and help people manage their finances and investment. Now the first thing that people do when you ask them to think about insurance or investments is turn around and run. “Don’t bother me now, there’s still time left for all that” is what most would say.

I have seen people who take investments very seriously; not to just save taxes, but to actually secure their future. And there are a certain category of individuals who are aware about the importance of investment but they just keep postponing their decision. Most of these individuals are just like Mahesh, a long-lost school mate of mine.  By the time I met him, it was too late.  Want to know more about him and what he did?  

Mahesh was a happy go lucky guy, doing well in his career, had a beautiful wife and a lovely daughter. Everything was going right for him. They were a great example of a picture-perfect family. While Mahesh used to work for a leading MNC, Rima had given up her career aspirations to look after their kid.

Rima was very conscious about spending habits and investments and Mahesh was exactly the opposite. Mahesh never took matters concerning finances too seriously. For him, life was all about enjoyment. “Why are we working hard for? It’s to enjoy life and make merry, correct.” Let’s worry about ‘future’ in the future and try and enjoy our life today.”

All attempts by Rima to make Mahesh understand the situation finally led him to invest in a couple of random investment schemes. No, he didn’t bother to check the details. He just opted for something that his best buddy at work opted for. The idea was to stop Rima from cribbing and of course it was the end of the financial year and he could avail of some tax benefits.

Rima stopped cribbing after a while and everything was hunky and dory until the time tragedy struck. Mahesh met with a fatal car accident.  It was not his fault though, but the guy on the wheels of the other vehicle was drunk to the tee.

Rima was grief stricken. As the news sunk in, the feelings of grief and sorrow was soon turned into worrying thoughts of apprehension and uncertainty. What will she do now? What has Mahesh left for her and her child?  What does the future hold for them now?

So, what’s the moral of Mahesh and Rima’s story?

Both Rima and Mahesh did not care about planning for emergencies. The investments that he had made for tax saving purposes were not of much use and not enough to care for her and her child’s needs. What will she do next? Will she have to sell her jewellery and house while she again starts looking for a job?

Reading this narrative gives one the impression that this can only happen in stories or to others.  We never believe that this could happen to us.  Well what if it would?

Any lay person can tell that all Mahesh had to do was buy himself a life insurance the coverage of which would have been sufficient enough to cater to the immediate and future needs of his family. This would have ensured that Rima would have got the required financial support and enough time to plan for the future.

Also many would argue that life insurance is costly and not a worthwhile investment.  Well, the fact of the matter is, it isn’t costly.  Case in point - the amount you spend on buying yourself a flashy new smartphone would cost you at least 5 times more than the cost of buying a life insurance policy worth half a crore. Do you still think it is costly?

This post is submitted by Surabhee Gupta, Senior Marketing Manager, HDFC Life.

Surabhee Gupta is an MBA graduate from Symbiosis Pune. She has spent last 6 years in online Insurance sector. She is currently associated with HDFC Life overlooking their marketing portfolio.


About HDFC Life

HDFC Life, one of India's leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.

For more information please write in to [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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