Term Insurance 101
What’s the most important thing in your life?
9 out of 10 times, the answer is almost too obvious — “Family.” It could be your kids. It could be your parents. It could be your spouse. It could be anybody connected by blood. In fact, if I asked you, what would you do for the people you love? You’d probably say something like this — I’d give up my life to protect them.
But alas, giving up your life doesn’t aid them in any real sense.
Think about it.
If they are dependent on you in any meaningful way, then your passing would be detrimental to their cause — Who’s going to pay the EMI on the nice new house you just bought?
Your dad who’s just retired?
— That man barely has enough savings to cushion his own retirement plan.
Maybe your spouse who only recently quit her job to tend to the family?
— But she’s already under terrible financial duress. You want her to think about EMIs?
Or maybe you don’t have an EMI?
— Well, maybe. But you probably have dependents. And once you are out of the equation, they’ll have to make do without you.
It’s an uncomfortable thought. In fact, for most people, it’s unpalatable.
Because it’s extremely hard to confront reality without you in it. You’ve only known one version of the world and that version has you all over it. But one day that will change. And when that day comes, you will be forced to reconcile with the aftermath one way or another.
So the next time somebody asks you — What would you do for the people you love?
Tell them you’ll buy Term Insurance. It probably sounds silly. Maybe even juvenile. But the thing is, it’s not. It takes a certain amount of character and a fair bit of gumption to confront these uncomfortable truths — To plan for a life without you. And the fact that you’re reading this tells me — You are brave. That you care. So in a bid to uncomplicate matters, let me explain through a series of use cases, what term insurance means, how it works and some of the things that will make this complicated subject matter a lot easier for you.
Hopefully, this helps.