Everyone wants their money to grow. But here’s a question many of us miss...
What happens if you are not around to see your investments grow?
Wealth creation is only useful if your family is protected along the way. And the answer to this protection is simple: a term insurance plan.
When I once spoke to Golden Mean Finserv, a life insurance agent in Pune, they said something that stuck with me: “Investments give you returns, but insurance gives your family time.” And he was right.
Why Protection Matters More Than Returns?
Investors usually chase growth. They compare returns of different asset classes. They calculate SIPs and track stock portfolios. But the truth is, investments take years to show results. If life throws an unexpected turn before those years are complete, your family may not have enough to depend on.
That’s why a life insurance advisor in Pune would often tell new investors to “protect first, then invest.” Protection makes sure that your investments get the time they need to mature, while your family’s financial needs remain covered.
What Makes a Term Plan Different
There are many types of insurance plans. Some mix savings with insurance. Some are linked to the market. But a term plan is pure and simple, it only provides protection.
Fixed payout: If the insured person passes away during the policy term, the family receives a lump sum.
Low cost: Term plans are much cheaper than other policies. For the price of one family dinner each month, you can buy ₹1 crore coverage if you are young and healthy.
No frills: Unlike other products, there are no bonuses or complicated returns attached. The purpose is simple, to secure your loved ones.
This honesty and simplicity make term plans one of the most reliable financial tools.
Why Investors Should Not Ignore It
Imagine this:
You have built investments worth ₹20 lakh.
You also have a home loan of ₹45 lakh.
If something happens to you tomorrow, what will your family do?
Without insurance, they will be forced to sell investments early, probably at a loss, and still struggle with loans. With a term plan of ₹1 crore, they can repay the loan, handle expenses, and still have enough to live with dignity.
That’s why investors must remember: protection is the foundation of financial planning.
Choosing the Right Company
With so many life insurance companies in Pune, picking one can feel overwhelming. Here are a few simple tips to choose wisely:
Claim Settlement Ratio (CSR): Higher ratio means better chances of claim approval.
Customer Service: Check how easy it is to reach them for queries.
Flexibility: Look for policies that allow you to increase coverage or add riders.
Premium Affordability: Balance between cost and benefits.
It’s always wise to compare different insurers before finalizing.
Insurance vs. Employer Cover
A lot of working professionals think they already have life cover because their company provides group insurance. But here’s the catch:
Group cover is usually limited, often only 2–3 times your annual salary.
It ends the moment you change jobs or retire.
It does not grow with your changing responsibilities.
This means it’s not enough to protect your family in the long run. A personal term plan stays with you no matter where you work. It’s flexible, reliable, and can be customized with riders.
Riders That Strengthen Your Plan
Insurance is not one-size-fits-all. Depending on your needs, you can add riders (extra benefits) to your term plan:
Accidental death benefit – Extra payout if death is due to an accident.
Critical illness cover – Pays a lump sum if diagnosed with serious illnesses like cancer or heart disease.
Premium waiver rider – Waives future premiums if you lose income due to disability.
These riders cost a little more, but they give a lot more protection.
How Much Cover Do You Really Need?
There’s no magic number, but here’s a simple rule investors can use:
Multiply your annual income by 20–25.
Add your outstanding loans to this number.
For example, if you earn ₹10 lakh annually and have a ₹40 lakh home loan, your cover should be at least ₹2–2.5 crore. This ensures your family can manage expenses for 10 years or more without making drastic compromises.
How Life Insurance Complements Investments
Think of insurance as the safety lock of your investment portfolio. While your mutual funds or real estate grow wealth over time, insurance guarantees stability. It buys time for your investments to perform, without forcing your family to sell them early.
Quick Investor Checklist Before Buying
✅ Assess your financial responsibilities (loans, dependents, future goals).
✅ Calculate the right cover using income × 20 + loans.
✅ Buy early to lock in lower premiums.
✅ Don’t depend only on employer cover.
✅ Be honest about your health history to avoid claim rejections.
Conclusion:
A term plan is not about you. It’s about the people who depend on you. As an investor, you already understand the value of planning for the future. But real planning begins with protection.
Investments build wealth, but insurance protects it. One gives growth, the other gives peace of mind. And together, they create a balanced financial plan.
If not, maybe it’s time to talk to a trusted advisor and take the first step toward real financial security.
