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When Does Buying A Term Insurance Makes Sense ?


Basically there are just 2 types of life insurance products anywhere in the world, though there are endless variants of both these types :

1.Term Insurance

2.Endowment Plans.

The second kind has a savings/investment component, the first doesn’t.

An oft repeated thumb-rule in the financial advisory trade, is to generally recommend that clients simply buy term insurance for their protection needs and look to mutual funds etc. for their investment needs. Combining protection and investment, according to this school of thought ,leads to sub-par results on both fronts.

My advice is a bit more nuanced. As long as a person can afford it, I recommend certain Endowment Plans, such as the now withdrawn Whole Life Policy of the LIC , over Term Plan+ MutualFunds or Term Plans+ PPF etc. I believe that such plans make for excellent investments returns-wise and tax-wise and allow people to enjoy predictability and stability in their wealth portfolio over many decades. Along with the flexibility to change plans as and when required.

However, I do believe that Term Plans have an extremely important place in one’s finances. Following are situations when you must absolutely opt for Term Plans:

1.If you are a wage/salary earner with a large number of dependents and have no large income from assets or businesses ,no stock-pile of assets that can be cashed in or otherwise tapped to provide for your dependents, the first thing you must do is sit down with a term insurance calculator and figure out just how much money you need to somehow find the money to afford the term insurance you need to provide for your dependants in case of your sad demise. You are ultimately their only hope for a better future.

2.Should you decide to become self-employed, or tap into assets such as your home to borrow the money to set up a business, make certain you have enough Term Insurance to cover your loans and business liabilities, especially if you have not thoroughly segregated your personal and family assets from your business assets.

3.Adequate keyman insurance for personnel crucial to the survival of your business.

4.If you are taking out  huge mortgages to finance home purchases, you can consider a term insurance to cover repayment in case of your demise. However, I find that mortgage insurance/home-loan insurance often works out cheaper and is often available to older people who might no longer be eligible for Term Insurance or larger sum assureds in case of Term Insurance.

So Term Insurance has its time and place in your financial life. Use it wisely as needed.

 

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The Influence Of Wealthymatters On Instagram


If its an offering targeted at an affluent population or a luxury product, today Instagram is probably the marketing channel of choice for most brands and marketers. So what can wealthymatters do on Instagram ?

Quite a bit, I’d say. The pictures do their own talking.

 

#RallyForRivers With Sadhguru


wealthymatters

Green earth, fertile soil, healthy ecosystems and at the heart of them all… healthy rivers……………….What price can you put on all this ?……….You’re right, they are invaluable. And we are at a point in time in the history of India where we can pitch in and ensure that we as a nation take the right decisions and put in the work over the next 25 years to ensure that we pass on a “sujalam, sufalam” country to future generations, rather than simply press children to sing such words, even as they know nothing other than a degraded land. Read more of this post

Different Types Of US Visas


A lot of people’s wealth building plans today involve education, work and investing in the US.

Here are the pros and cons of various types of US visas :

wealthymatters

 

Carlos Ghosn On His Life ,Identity And Globalization


wealthymatters

The first I heard of Carlos Ghosn was a decade ago. My friend Damien was his head of automotive-train research and boy did he hero-worship the man! Even in those days, I was mostly put off by this man’s philosophy of life though I could hardly have articulated why. But a decade on, I can bluntly state our differences:

1.I’m of the ” work is a part of life” school not the “work-life balance” school. So with me, its find personally meaningful work, work that feels like play and indulge in doing something joyful everyday. Family and friends, according to their capacity and interests, are welcome to join me in my work.

2.I’m cosmopolitan, but at the same time deeply rooted in my primordial identities. I have no interest in changing my stand to pander to either Nationalists or Internationalists.

3.Family is central to my life. The only reason I’m bothered about wealth is for the good life it can secure for family and the larger community, in that order. Sacrificing family and social life to make more money is not a compromise I’m willing to make.

That said, its not to say that it not worthwhile reading what Carlos Ghosn has to say. He is right in saying that where we are born need not limit what we become. And for a person who shares more in common with Carlos, perhaps he is a good role model. Damien has an Algerian father, a French mother, a French citizenship and education and practices Kendo , a Japanese style sword-fighting. He identifies as French because as he says,he believes in French secularism. An approach I can’t really quite wrap my mind round, but obviously it works for some people! Read more of this post

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