Five Questions On Term Insurance

Term Insurance–  It’s a two letter word which many of the investor’s do not like to discuss or are not interested at all. It’s not that they don’t need it but such has been the growth (ULIP’s) of insurance industry that investor’s now are hesitant to discuss anything beyond death.

Instead, an Advisor or a Planner is loaded with question he isn’t prepared for.These questions tells us the  awareness on term insurance and where it has actually penetrated for so many years.

Here are five question which an advisor  face or had already faced from an investor during his/her discussion on  term Insurance:

Life is very uncertain and one should be well prepared for what lies ahead in the future.

 Recent Incidents of Rail and Air Mishaps  has cleary indicated  this uncertainity.Through Term Insurance we can safeguard our family from any financiall loss which arises due to mishappenings.

Motor Insurance was made compulsory and now people have started recognizing the importance of it.So should be the importance of Human Life while planning for your family future.

Every advisor pray for longevity of his clients because the more he lives the more he earns.But as said life is very uncertain.We should be prepared for all circumstances in which our family will live and so should be making provisions today.

This was the most amazing question an investor asked to an advisor during the discussion.He Compared term insurance with Gambling without understanding the rationale behind it.The real difference lies in the thought process-While gambling you are not thinking about your family.What you are bothered is doubling/Tripling your money in that short period. But when you buy a term insurance your concern is only your family.

Till now for every need of a customer there was only one product-ULIP.The selling feature were so good that a customer is loaded with not one but many ULIPs in his investment basket.Infact this was the the only investment one use to think, planning for Retirement,Child and Taxation.

While planning for any of these needs one should clearly identify various investment options and should allign them with his/her financial objectives.

A term insurance for home loan only protect the asset for family during any mishappenings.How much term insurance one should buy depends on many factors like Income,Expenses,Liabilities etc.

All the above question highlights the some of the reasons behind under insurance of Indian Investors.Missleling of ULIPs in the past has been a major driving factor for this which clearly identifies the need of Financial Literacy not only among investors but also for advisors.