Are we protected? – The Solution

This article is in continuation of our series on Financial planning. The first article in the series was posted last week explaining the common scenario in Indian families regarding Financial planning. Check it out here.

After knowing the problem now, lets move towards the solution.

One of Subodh’s friend stepped in to help Sanjana and the family. He could facilitate the settlement of a death claim for a Life Insurance Policy which was bought by Subodh’s parents in his name when he was a teenager and it fetched the family merely 50k rupees. The money came and vanished. In addition to that, Subodh had opted for a onlineTerm Insurance Cover of 1.5 Crores. His friend informed the Life Insurance Company and in just 15 days after submitting the necessary documents, a company representative visited Sanjana and Subodh’s parents and handed them over a cheque of Rs 1.5 crore in the name of Sanjana Bhaskar.

They did not have words to thank him for the money and he was no less than an Angel to them. First thing that Subodh’s father did was to pay off the housing loan and other petty loans that were haunting them for some time. After clearing all the liabilities, they were left with around a sum of around 1 crore which they deposited in the bank in a Fixed Deposit.

The branch manager in the bank guided them to opt for a monthly repayment of interest which fetched them around 75000/- a month. This sum of money was good enough for a family of 3 to survive even in a big city since all the liabilities have been met. This money was guaranteed throughout the life for them. Though no insurance company can compensate the emotional loss of the family but strangely the life moves on and the emotional loss evaporates by itself as soon as the bitter realities of life hit the family.

The reality is that the bigger demon i.e. The Financial Loss looms large on the families who lose the bread-winner. Every one gives priority to the emotional loss that a family has to suffer but no one thinks of the financial loss that a family has to deal with, due to the loss of regular income. The expenses can be curtailed but can’t be nullified. Therefore, there has to be a regular income to maintain the same standard of living that the family enjoyed earlier. The sudden fall in income leads to a dent in the standard of living of the family and this void can’t be filled ever.

Normally, when anyone talks of Life Insurance, we admit that it is important, we also feel one should have it but when it comes to buy a Life Insurance plan, we keep postponing it. There is no right day, right week or right month to buy a Life Insurance Policy. If we do not have ample risk cover, our family, our standard of living, may fall flat on the face in case of a mis-happening.

And the strange part is..this cover may not cost more than one pizza party or one family dinner.

Will you be interested to know more on how to go about Financial planning? If yes, please put your comments on this article. You can even ask specific questions about your financial planning needs and we’ll try to provide a customized answer to you.

For any feedback on the article, feel free to comment and rate the article below.

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One thought on “Are we protected? – The Solution

  1. Fixed deposits (FD) are one of the best ideal investment tools in India. Fixeddepositbazaar is leading financial information source which provide services such as a Fixed Deposits, Bonds, and Debentures etc.

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