Saturday, July 12, 2008

Hi, you suckers!!!

Hi, you suckers!!! Yes, those of you who only have ULIPs(Unit linked plans) as their insurance. Have you calculated the total worth of how much your nominee will receive in case of the event of your death tomorrow(God forbid). Under the present scenario, where are the markets are in bad shape, it will be hardly anything worthwhile to take care of your family's needs for the decades to come. (And ya, didn't the agent promise you a lot of money in case of death? WHAT IF you pass away this month? What do you think the nominee will get? Do calculate.) If you are going for a ULIP, be sure to pass away when the market is at a high, else, it is going to be harder on your family.

Sorry for that tone, but it is meant for all those educated stupid people who will buy insurance for cars which are worth more than a few lakhs and value themselves far less than the cost of their vehicles. Sorry, I don't have any regards for people who value their lives less than that of the vehicles they drive. There are so worthless. Coming to my point, ULIP is/was the hottest-est newest-est product in the financial markets in India and the agents get huge commisions on selling these compared to other products and hence they will push you to buy it so much. The truth is the output of the pay in case of death is the maximum of either the assured amount or the cost of your units accumulated. I believe that everyone would like to see their families not suffer financially after the passing away of a loved one(the bread winner). Now for that you need to calculate the amount of money that would be safe enough to keep your family in good financial health. This amount is kind of known per se. How can anyone be so stupid to not secure money for the family and allow the vagarities of the world directly affect your financial position of tomorrow? It is never too late to get a term plan life insurance as they have many benefits:
1. They are the cheapest form of insurance. (For every rupee insured).
2. They pay back the full assured amount.
3. This is just like your vehicle insurance. You pay a certain sum of money every year that you don't get back. If the insured loses his/her life, the insurance company pays the money assured(If the vehicle is lost, the insurance company pays the insured amount).
If you are ok with this form of insurance for the vehicle, then why not for life.

A small comparison: A 24 year old pays around Rs.2800 for one year for a term policy of an insured amount of around Rs.14 lakhs, but I am sure if you own a new car worth far less, your insurance premium will be much more than this(Rs.2800). So if you don't have a term plan, then get yourself one asap.

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