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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Everything About Term Life Insurance

“Jo bachchon se kare pyaar, woh term insurance ko kaise kare inkaar!” If you love your family, term life insurance is indispensable. Financially securing your loved ones in the event of an untimely death is crucial, and term insurance offers this protection at an affordable cost. Protection, Not Investment Term insurance is the simplest form of life insurance. You pay a relatively small premium and receive a large life cover for a fixed period. Unlike endowment plans or unit-linked insurance...

Everything About Term Life Insurance

“Jo bachchon se kare pyaar, woh term insurance ko kaise kare inkaar!” If you love your family, term life insurance is indispensable. Financially securing your loved ones in the event of an untimely death is crucial, and term insurance offers this protection at an affordable cost. Protection, Not Investment Term insurance is the simplest form of life insurance. You pay a relatively small premium and receive a large life cover for a fixed period. Unlike endowment plans or unit-linked insurance plans, it does not combine insurance with investment. This separation is important. Insurance should protect your family, while investments should help you create wealth. Traditional insurance-cum-investment plans often provide modest returns that may struggle to beat inflation over long periods. For many people, buying adequate term insurance and investing separately through suitable mutual funds or other investments can be a more efficient approach. For instance, a healthy person in their thirties may be able to purchase a term cover of Rs 1 crore for approximately Rs 15,000 to Rs 20,000 annually, depending on age, health, policy tenure and other factors. Insurance Needed You should strongly consider term insurance if your spouse, children or parents are financially dependent on you. It is also essential if you have liabilities such as a home loan, car loan or personal loan. Even a non-working spouse may require life insurance because replacing the economic value of household responsibilities, childcare and family management can be expensive. To summarise, if you have loans or plan to take loans, have children or plan to have children, or have a financially dependent spouse or parents, term life insurance is an absolute must. Enough Cover A figure such as Rs 1 crore may sound large, but it may not necessarily be sufficient. The right amount should be calculated based on your family’s actual financial needs. First, estimate household expenses. If your family spends Rs 10 lakh annually and you want to provide for the next 15 years, you may require at least Rs 1.5 crore for basic living expenses. Second, add all outstanding loans. A home loan of Rs 35 lakh and a personal loan of Rs 5 lakh would increase the total requirement to Rs 1.9 crore. Third, include future financial goals. If your children’s higher education is expected to cost Rs 50 lakh, the required cover rises to Rs 2.4 crore. Fourth, provide an additional amount for your dependent parents or spouse. Adding Rs 20 lakh would take the total requirement to approximately Rs 2.6 crore. Finally, adjust the calculation for inflation. Inflation gradually erodes the value of money. To ensure that your family has enough to meet rising expenses, it is wise to add an appropriate inflation adjustment to each of the above steps, as necessary. Do Not Delay Term insurance is generally cheaper when purchased at a younger age and while you are in good health. Disclose all medical conditions, lifestyle habits and existing policies honestly, as incorrect or incomplete information can create difficulties during claim settlement. Life is uncertain, but your family’s financial security need not be. The purpose of term insurance is simple: even in your absence, your responsibilities should continue to be fulfilled. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Dangerous Departures

Updated: Oct 30, 2024

Dangerous Departures

In yet another shocking incident adding to Mumbai’s infamous tryst with stampedes, chaos erupted at Mumbai’s Bandra Terminus following a weekend stampede that left at least ten persons injured, two critically so. A crowd surged toward the Gorakhpur-bound train with nearly 1,500 people vying for seats in 22 unreserved compartments, leading to the stampede. Several others narrowly avoided tragedy, with some even pushed onto the tracks. This is not a unique episode but rather a recurring theme in Mumbai’s bedevilled crowd management, one that has haunted the city’s public spaces, particularly as festive seasons magnify the crowds.


Mumbai is no stranger to stampedes. A horrifying incident in 2017 at Elphinstone Road Station left 23 people dead and nearly 50 injured. The cause was a familiar one: an overwhelming crowd confined to a narrow footbridge during peak rush hour. The tragedy sparked an outcry, with promises from authorities to upgrade infrastructure and enhance safety protocols. Yet seven years on, crowd-related incidents continue to be a constant danger. Today’s incident reveals a similar lapse—a lack of foresight in managing the thousands who gather on platforms ahead of Diwali, eager to return to family. That the Gorakhpur Express was unreserved and heavily crowded was predictable.


The issue lies beyond simply crowd density; it is emblematic of deeper systemic negligence. The Brihanmumbai Municipal Corporation (BMC), responsible for local public safety, along with the Railways Ministry, bear responsibility for ensuring order at such high-risk hubs. Although the BMC acknowledged the “festive rush,” it appears little was done to pre-empt it. Swift action could have been taken to either disperse the crowd or reroute passengers. Instead, chaos prevailed.


Political reaction has been swift but uninspiring. Aaditya Thackeray, son of Uddhav Thackeray, launched a scathing attack on the Union Railways Minister, Ashwini Vaishnaw, branding the incident a result of the minister’s “incapable” leadership. This hardly addresses the immediate need: a substantive plan to manage crowds and prevent similar incidents.


Mumbai’s transport infrastructure remains sorely outdated. Platforms are undersized, signalling systems frequently falter, and crowd control mechanisms are grossly inadequate. Despite repeated accidents, there has been little investment in comprehensive crowd management systems or the deployment of personnel trained in emergency response. While railway footbridges were widened after the Elphinstone tragedy, Bandra’s incident demonstrates that such incremental changes are insufficient. Mumbai, which sees a swelling populace during festivals, demands a robust strategy to address its vulnerabilities. This should include technology-driven crowd monitoring, clear communication channels to inform passengers of platform conditions, and additional security and medical staff on high-demand days. It is essential that crowd management training for personnel becomes a priority rather than a reaction to tragedies.

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