Life Insurance: A Godsend for a Rainy Day


Life is unpredictable. Well, only when it comes to other people! It’s no surprise that every person thinks that his life will always be smooth and most people never prepare themselves for an eventuality. Until ofcourse it either hits them hard, or they witness a painful experience of someone very dear to them.

A similar incident happened with my neighbour Mr. Sharma which shook him completely and made him take some very important decisions in life. Mr. Sharma’s best friend, Anil – a 35 year old young athletic man, CFO of a well-known MNC bank, father of a 2 lovely small children and husband of a homemaker, died in a car accident. He died on the spot in his brand new SUV. Since Anil worked in a Bank in a senior position, his house and car were office perks. He didn’t really think of buying a house on his own since he was very confident of growing in his profession every year and had a long way to go considering he had a long way to go. Upon his death, his family was in a mess because they literally had nowhere to go and with very little money at hand. Anil never really believed in life insurance plans, especially Term Insurance. According to him that was a waste and he would be better off investing in mutual funds, where he could monitor fund performance. How his family suffered thanks to his thought process is anybody’s guess.

When tragedy strikes, lack of life insurance hits like a ton of bricks! #lifeinsurance #EdelweissTokioMyLife Click To Tweet

Mr. Sharma was very disturbed and requested me to help him look for an appropriate life insurance policy; since he had many liabilities. Though he was doing phenomenally well in his career and made regular investments, he never really took the concept insurance seriously. I was a finance person, so was happy to help him. The first thing we did was to look up policybazaar and search for an appropriate online term life insurance. It threw up a lot of options of life insurance quotes; and the ones that we zeroed upon were policies from Bharati Axa, Edelweiss Tokio Life and HDFC life.

Initially Bharati Axa seemed most appealing since it was the cheapest in our search. But after having read the features, terms and important details we figured that they covered upto the maximum age of 75 years. The Edelweiss Tokio My Life+ was a rather attractive option being a low cost term assurance plan, with a coverage of upto 80 years and discounts for higher sum assured. This seemed the perfect solution to Mr. Sharma’s long term needs. We did the needful and bought the policy; leaving Mr. Sharma a relieved and happy man; having learnt a very important lesson – a life insurance policy is truly very crucial.

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