Hello Reader, welcome back. In this article will see about Term Insurance.


Let me ask you What life insurance do you have? The same question I have asked my friends and family. The normal and most common answer will be I am paying around 20,000 Rs to 25,000 Yearly and after soo many years I will get around 25,00,000 Rs to 30,00,000 Rs. So are we talking about Life Insurance or Investment.

If you are interested to get money back for your invested money then all should focus on investment in equities or SIP or mutual funds.

What is Life Insurance?

Life insurance is a cover against your life, suppose if something happens to you then there should be some amount that will support your dependents to lead a peaceful life without disturbing their requirements.

In terms of insurance, you are going to pay a fixed amount of premium to the company against your life. The sole purpose is in case anything happens for you the Insurance Amount will be transferred or given to your Nominees like Wife, Children or Parents etc.

The life insurance will not have any maturity benefits but in case of death, the amount will be benefited for the nominees that our loved ones. It will always make you sleep in peace and it will always cover the life of your dependencies.

Also Read: What is a Stop-loss order? Investing and Trading for beginners

Why Term Insurance?

Consider you have taken a big loan may be Home Loan or Car Loan. So now you have to pay the Installment amount or Loan amount back to the providers.

In case of the sudden death of Loans taken the entire burden will be transferred to their nominees or loved ones. In this case, the family will be in trouble and it will be the biggest financial crisis. So while keeping this in mind it’s always better to take good Life Insurance have cheap or small Life Insurance.

It’s always suggested to take life insurance at the earliest stage so let’s take if you start earning then you have to have life insurance with you. The premium will be lesser if you start early the risk of death is always less in small age than higher ages.
The risk for a particular person will be considered based on the age and health condition of a person. Life insurance is a hedge for your life.

Again here the premium is fixed, let’s say 30 years if you’re paying say five thousand annually today the same amount will be paid every year till 30 years. Today’s 5,000 will definitely cost more but the same after 30 years will be considered very less due to an increase in inflation every year. In India, inflation is around 6% to 7%.


So this is the right time to purchase good life insurance which covers a good amount for your family. So if you strictly want to go for life insurance then go for term insurance because that serves the whole purpose of securing or covering your life.

Source for this article CA Akshatha Udupa and also don’t forget to subscribe to her channel
Official Website of www.caakshathaudupa.com
You can consider purchasing CA Akshatha Udupa courses to learn Price Action and Options Trading.

Thank You.


Please enter your comment!
Please enter your name here