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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.)

Gun Violence in America

Updated: Jan 2, 2025

Gun Violence in America

On December 16, 2024, tragedy struck Abundant Life Christian School in Madison, Wisconsin, where a 15-year-old student, Natalie Rupnow, fatally shot a fellow student and a teacher before taking her own life. Six others were injured, with two in critical condition. This devastating event is a grim reminder of the United States' ongoing struggle with gun violence, particularly in schools.


A Long History of Gun Ownership in America

The issue of gun violence in the United States cannot be discussed without acknowledging its deep-rooted history of gun ownership. The right to bear arms is enshrined in the Second Amendment of the U.S. Constitution, adopted in 1791, which states: “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”


Initially, this amendment was intended to empower citizens to form militias for self-defense during a time when standing armies were distrusted. Over the centuries, however, the interpretation of the Second Amendment has evolved. Today, it is often cited as a justification for individual gun ownership, a concept reinforced by landmark court cases such as District of Columbia v. Heller (2008), which affirmed an individual's right to own firearms for self-defense.


Gun culture is deeply ingrained in American society, with nearly 400 million firearms in civilian hands—more guns than people. This level of accessibility, coupled with a powerful gun lobby led by organizations like the National Rifle Association (NRA), has made significant legislative reform difficult.


Gun Violence in Numbers

According to the Centers for Disease Control and Prevention (CDC), firearms cause approximately 40,000 deaths annually in the United States—equivalent to 109 deaths per day. This figure includes homicides, suicides, and accidental shootings. Among children and teenagers, firearms are now the leading cause of death, surpassing motor vehicle accidents.


School shootings are a particularly horrifying aspect of gun violence in America. Since 1990, there have been over 800 incidents in K-12 schools, resulting in more than 500 deaths and over 1,000 injuries. High-profile tragedies such as the Columbine High School massacre (1999), the Sandy Hook Elementary School shooting (2012), and the Marjory Stoneman Douglas High School attack (2018) have shocked the nation and the world, yet meaningful reforms remain elusive.


A Global Comparison

The United States stands out among developed nations for its high rate of gun violence. In countries like Australia, Canada, and much of Europe, strict gun control measures have significantly reduced firearm-related deaths. For example: By contrast, the firearm-related death rate in the United States is 12.2 per 100,000 people, significantly higher than other developed nations. The prevalence of guns and the lack of uniform gun control laws contribute to this disparity.


Challenges in Addressing Gun Violence

Efforts to reduce gun violence in the U.S. have faced significant obstacles. One of the most notable is the prohibition of federal funding for gun violence research. In 1996, Congress passed the Dickey Amendment, effectively barring the CDC from studying gun violence as a public health issue. Although the funding ban was partially lifted in 2019, its legacy has left the country with a limited understanding of the causes and solutions to gun violence.


Advocates have long called for measures such as:

• Universal Background Checks: Closing loopholes in gun sales to ensure that all firearm purchases are subject to background checks.

• Safe Storage Laws: Requiring gun owners to store firearms securely to prevent unauthorized access.

• Bans on Certain Firearms: Prohibiting the sale of assault-style weapons, which are often used in mass shootings.


The Debate Over Gun Rights and Reform

The debate over gun control in the United States often pits the rights of gun owners against the need for public safety. Opponents of stricter gun laws argue that restrictions infringe on constitutional rights and fail to address the root causes of violence, such as mental health issues. Proponents, however, point to the success of gun control measures in other countries and the overwhelming public support for policies like background checks.


A Way Forward

Despite the challenges, there is growing momentum for change. Grassroots organizations, survivors of gun violence, and some lawmakers are advocating for comprehensive reforms. The Madison school shooting serves as a stark reminder of the urgency of these efforts. As the nation grapples with its gun violence epidemic, it must look to both its history and the experiences of other countries to find a path toward a safer future.


(The author is a resident of US. Views personal.)

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