When I wrote in 2006 ‘you should take a term life insurance of Rs. 1 crore’ many people wrote to me saying:

– he must be a life insurance agent

– this is not for the middle class…how can we pay thousands of rupees premium?

– if we put all our INVESTMENTS in life insurance, what will we eat?

– how can I pay Rs. 2.5L per year as premium?

…..and many such comments (even now if you search for ‘If you died tonight what will your family do?) you will find many of the comments.

Even now the myths have not changed much….recently one kid in the office wanted to buy life insurance. I said ‘Go to the net, and buy the cheapest life insurance that you trust’.

He found Aviva at 7200 and many from various prices from 7200 to 45,000 Rs. premium per annum!

What followed was even better…another girl came up and said ‘What is he buying?’

I said: ” term life insurance”

she said: What sum assured?

I said: Rs. 1 crore.

She: OMG that will be Rs. 150,000 premium! is it not too much?

I said: No it is Rs. 7293 ONLY

she said: per month?

I: No dear girl, PER ANNUM…

she said ‘but my uncle just sold me a LIC policy of a premium of Rs. 25,000 and sum assured of Rs. 15 lakhs…why is there so much of a difference?

I: hmmm that we will discuss separately…

My uncle (change it to whatever you want!) told me this is the best policy and he is doing it for me…..what can I do..I have already paid 2-3 premia

Well grin and bear it, girl. Or damn your uncle – just drop the plan!

Not sure what she has done…..