I think rediff got some money from this guy to allow him to publish this nonsense article so he could advertise his Subramoney!! You give 2 rare examples and make an article out of it. Crazy!
But mr subramaniam in term insurance you arent required to stay the whole term so even if u have taken a term policy for 30 years term and after say ten years, you find you no longer need the cover, you just stop paying! So where is the over insurance? And by another logic, if you have made a windfall say in between, still keep the term policy alive and will the proceeds to the charity, should one kick the bucket! Finally the topic is misleading, when we havent been given the comparison with other nations - average earning versus sum insured!
Re: indians over insured?
by Varadarajan Ravindran on Jan 09, 2015 07:15 AM
Insurance is another hoax in the richer class communities. A fool and his/her money are soon parted.
Re: not at all
by Varadarajan Ravindran on Jan 09, 2015 07:16 AM
Rich people do not need insurance policies. The money may be invested in significantly better yielding vehicles.
I respect the opinion raise but Partly disagree with the view. Insurance that too Term Insurance is the need of Time. Even 1 cr SA doesn't seems a very comfortable amount these days. It is a security. We should look at the family where the earning head of family is passed away then we realize how mush vital it is.
The Real reason that we are “over insured” is that as we have no social security, our government defined standard of living is despicable and hence we are looking for insurance which will take care of all our need. Our society is such that there is usually one earning member to 4 dependents and he is burdened with fulfilling all family needs including higher education and children’s marriages. The old LIC advert is the prime Example of this unsaid rule. We are always lead to believe that our Sum assured would not be enough to stand up to 10% Retail inflation Compounded year on year. No company ever comes up with a single, simple yet comprehensive policy that includes Death or Injury in accidents, Ability to cover Very High Hospitalisation expenses, and leave us with a corpus upon retirement hence we scamper here and there to provide for everything..and we do not realize that in running for a secure future 40 years in the future we are living a sad today.
