Importance Of Life Insurance  

Life insurance is one of those things…you end up realizing its importance only after it is too late.

In a recent nation-wide study, over a third of the respondents who had their life covered didn’t know what kind of policy they had. Although 70% had no doubt that their insurance companies would pay out if the need arose, only 34% knew how to collect a payout.

Do you fall in this confused category? If so, it’s crucial to educate yourself about life insurance, especially if you have dependents, mortgage or a significant amount of debt to pay.

Don’t just take our word for it – read the true stories about life insurance below, and how it made or could have made all the difference.


I don’t need an insurance policy…

Sanjay Borkar (42), a lawyer, was unhappy today. ‘Happy’ is not often used to describe lawyers but today, he was especially unhappy. The wind playfully tugged at his jacket and the November chill made him shiver. He had won a case which would boost his career but his mood was far from self-congratulatory. The client he was representing for an injury suit against a health insurance company was barely a few years older than him. While he hated to admit it, Borkar was scared that men so close to his age were not only suffering severe health problems but were also forced to take legal measures to ensure that the insurance company honour the claim.

As he reached home, he was reminded with some guilt of his wife’s insistence for an insurance policy for both of them over the last few years. It wasn’t that he didn’t agree…he just hated the idea that he might leave his wife and family someday. After seeing his client fight so desperately for the money he needed to take care of his family, Borkar could no longer put off the decision.

His wife was right. All it would take was to go online and check or make a quick phone call to a personal insurance agent to kick-start the process. He suggested to his wife that they complete the formalities. The look of surprise and happiness in her eyes reassured him he was doing the right thing.

Pinnacle Wealth Management recommends:

  • You take the time to realistically assess your family’s risk exposures if the bread winner is gone.
  • Get a life insurance agent and seek their advice about the right type of policy to cover your family’s exposures.

insurance 2

I can’t afford it….

This is one of the most common reasons people give for not understanding the Importance Of life Insurance. But the truth is: You cannot afford not to have it and it is less expensive than you think.

To My Dead Husband Ravi,

Why were you so against insurance? You always chuckled and laughed that you would never die. Well, guess what? You died one year later. It is now one-and-a-half years since you passed away. All our money is gone and I have some real physical and mental challenges.

I am left with our daughter, no home, handling two jobs, bills coming to me left, right and centre, and the damn creditors don’t stop calling. They are even calling our friends and my bosses. The doctor’s bills for your heart attack alone were in excess of Rs 7,00,000.

The fun and laughter we once took for granted are a thing of the past. All that remains is the pain. I believe I am as much to blame as you are for this situation. I should have remained alert to consider the alternative picture God was painting all the time. Instead, I chose to laugh about it, reassuring myself that it would never happen to us.

The joke is on me! I do not wish to re-marry. When someone dies, it’s amazing how the sorrow and pain surfaces.

I want to let you know I now have a policy on my life and I make sure it’s premium is the first payment I make every month. God forbid, if something ever happens to me, I know our daughter will be protected. You know what kills me the most? For only Rs 500 a month, we could have been protected.



Pinnacle Wealth Management suggests:

  • Calling the insurance agent rightaway and getting a policy today.
  • Be a part of paying the bills – know where everything is.
  • Plan your budget and everything else you do for the worst and hope for the best. That way you will never have a surprise in the worst case situation.

Would you like to wait anymore?

An investment strategy is a crucial element of wealth management. It is a combination of expertise and perception, complex market dynamics and innate planning. With the variety and complexity of the investment options available in today’s marketplace, it is important to have disciplined, experienced professionals to provide advice at every stage in your life. This is where Pinnacle Wealth Management Pvt. Ltd. comes in. They work with you to help ensure your goals are not just met but exceed your expectations at every step. Authors Kavita Bothra and Nina Kotian are directors at Pinnacle Wealth Mgt Pvt Ltd. and will pen a fortnightly column on financial planning ‘Money Matters’.
Readers can write to them at

One comment to Importance Of Life Insurance  

  • Raunak Roongta  says:

    Well done pinnacle in highlighting the importance of life insurance.

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