SOME EXAMPLES BASED ON REAL LIFE CASES OF SUFFERINGS BY NOT TAKING TERM INSURANCE

Hi near and dear ones,

With this blog I plan to close the subject of insurance, to move on to other subjects concerning financial freedom, inclusion and awareness.

Here I plan to discuss a few examples based on real life cases how people suffer by not paying attention to taking adequate cover. Aim is not to scare people but even if such scare can cause near and dear ones to pay attention to this important aspect the purpose will be served.

In India present government introduced and implemented a long overdue welfare measure by getting many poor people to open their accounts with the banks as well as introducing insurance cover of four Lakhs for less than a rupee a day in case of accidental death and two Lakhs in case of death for any reason. As some of you know we had plans to move to rural areas and make some contribution to the quality of education and thus stayed for one year to experience it ourselves but did not find it suitable and migrated to US to be close to our children and grand children. We were staying in a village then when this scheme was introduced and motivated many to take benefit of it. Now we heard of a sad story of a person who did not keep enough money to pay the yearly premium in his bank account and unfortunately died in an accident and could not get any benefit. The family is devastated and is finding it difficult to make a living due to loans taken in trying to save him after the accident. Please do remind all around you to open bank accounts,take these insurance covers and also ensure that renewal premiums are deducted from the bank account. Many will be spared from such sufferings. In rural areas and among poor and uneducated there are still people who have not taken action to take benefit from this very good scheme.

The other case is of an army officer who decided to leave the service early and did not have any term insurance and unfortunately died leaving his wife and children in financial distress ,as group insurance stopped and family pension then was grossly inadequate even to make a hand to mouth living for the family as this happened when services salaries and pensions were very poor in the period of 1973 till very recently. These have now improved but group insurance still stops when one retires leaving such people exposed to risk which is not covered . As group insurance also are in my opinion not adequate to cover risk fully.Services people remain exposed to partial risk even when serving and need to consider covering the gap by taking term policy while in service which suits them. More exact advice can be given to those who enroll on www.moneymonk.me  as every person has an unique life and financial position Thanks to increasing life spans there are many years to live after any retirement and services personnel need to be aware of this aspect depending on their personal and financial life situation and position.

I have allotted considerable time to this activity and will be happy if more services and ex servicemen make use of it. Its not free but you get to decide how much to pay only because anything offered free is not valued is my belief.

From the next blog I plan to look at another important aspect of financial planning "Budgeting"