WILL YOU RISK YOUR FAMILY'S FUTURE?

The universal fact is, Death is certain. It is only the when, where and how is uncertain. Investor Behavioural studies suggest that most respondents are not comfortable even discussing this very basic fact of life. Leave alone a clear-cut Will that details the Assets they hold and whom they wish to bequeath it to, most do not even have any Life Insurance.

- ASHOK KUMAR

MONEY-WISE

Life Insurance penetration in India is dismally low at less than 5% and well more than half among those, are under-insured. A primary reason for underinsurance among the few that have Life Insurance is the Indian obsession with deriving 'returns' for any money expended. Many are disappointed to know that after their term of Life Cover ends at a specified age, they will not get any pecuniary benefit or returns for the premium paid.

The fact is that, if one looks at pure Life Insurance as an investment per se, the only way to maximize returns would be to hope to die soon after taking a policy, before the next premium becomes payable. The Return on Investment in such a case would be extraordinary.