Are You Truly Insured — or Simply Trapped?

You may say, “Of course,” and you might question me, asking, “What nonsense is this? What do you mean? Insurance is always secure and provides financial security. How can it be a trap?”

Yes, I agree with you; most of us think only about the aspects showcased by the agent at the time of the insurance policy sale.

लेकिन क्या आपने कभी सोचा है? Did you ever truly think, how much are you paying, and how much will you get? Will that final amount manage your financial requirements then?

The hard truth is that most currently available insurance plans cannot beat inflation. So, in the end, they are giving a net sum-zero return over the long time period.

A Side of Life We Always Ignore

Let me present another aspect of life that we often ignore. Think beyond this narrow “insurance boundary.” I am fully confident that you will surely manage all your financial requirements and fulfill the wishes of your family while you are here.

But do you ever think: what if you are not in a position to earn, or not there to support them? अगर आप नहीं रहे, तो क्या होगा?

What will happen to your loved ones? How will they pay the Home Loan EMI and your dream car EMI?

Imagine the Unimaginable

Now think again: Are you sure your current traditional insurance will protect them in this situation, or will they suffer financially? Will your kids be able to continue their studies exactly as you dreamed for them?

Let me present a small scenario of what may happen to your family if you are not there: if the home loan is not repaid, then your home will be taken back by the bank, and your family will be without shelter. Your dream car will be auctioned. Someone else will drive it, and another person will sit in your spouse’s seat. There is a very long list of such circumstances you can’t imagine.

The Universal Truth

This is the harsh reality. It is the universal truth that we all have to go one day—some of us after delivering our responsibilities, or some of us in the midway of life, leaving our loved ones stranded.

We always plan our future with us only. But we must think beyond this. We must plan for without you. In a way, if tomorrow something happens to you, their life will not suffer just because of money. Life and death are not in our control, we can’t control nature’s plan, but we need to plan to control those things which are in our control.

भविष्य की सुरक्षा, आज ही। (Future Security, Today.)

Coming back to the topic, Hope it is now clear that your existing insurance does not truly support you. Do you now have fear, confusion, and questions like “What to do?” and “How to do?”

The Complete Shield

Don’t worry, Nupen Assets team is here to help you out.

One specific insurance product is available in the market that can deliver and ensure that you and your family will not suffer in any situation. It is named “Term Insurance.”

Yes, Term Insurance is the only one insurance that provides a complete shield to your family.

I know the moment you hear the word “Term Insurance,” the first things that come to your mind are, Zero return, No maturity amount, No benefits at the end of the policy end, “Waste of money.” This is the only reason for the low popularity of term insurance.

Yes, this is true, a layman thinks in this way only. But Nupen Assets advises you to think wisely. Any insurance is always protection for the probability of something happening or not.

Like you buy car insurance because there is a probability of an accident, and the insurance will monetarily help you to repair the car. But what if your car does not get into any accident during the policy tenure? Then is there any return you got? No, right? But after that, you still buy car insurance every year because there is a probability of car theft and accident.

Similarly, Term Insurance works on probability.

“हमेशा नज़दीकी फ़ायदे के साथ-साथ दूर के नुकसान का भी सोचो, और नज़दीकी नुकसान के साथ-साथ दूर के फ़ायदे का भी।” (Always think of long-term loss alongside short-term gain, and long-term gain alongside short-term loss.)

This zero-return concept is gone. Nowadays, lots of plans are available at the cost of a pizza per month that provide your premium back with certain conditions

How to Select the Best Fit Term Insurance for You

Term insurance is a critical part of financial management, it should be selected wisely.

Just as a doctor can’t give the same medicine to all patients with a fever—a doctor always treats based on patient age, weight, body temperature, gender, etc.—similarly, in finance, financial plans and products are always recommended based on your profile like age, annual income, profession, risk-taking capacity, and time horizon.

The Nupen Assets team advises you with common guidance on the minimum requirements you must check when you buy Term Insurance.

• Buy Early — Lock In a Lower Premium The younger and healthier you are when you buy, the lower your premium for the entire policy duration. Waiting costs more money every passing year.

1. Sum Assured Value: This should be a minimum of 20 times your annual after-tax income plus your current liabilities like home loans, car loans, etc.
2. Claim Settlement Ratio (CSR) & Amount Settlement Ratio (ASR): Consider plans with a CSR more than 99% and an ASR more than 97-98%. There is a chance that one company’s CSR is 99.99% but its ASR is below 90%. This means the number of policies settled is high, but the amount of claim settlement is low—perhaps the company passes low-value claims to improve its CSR and rejects a few high-value claims to manage its profit margin.
3. Exclude Group Term: Exclude group term insurance assured value provided by your employer, as this cover ends when you leave the job.
4. Add Riders: Add riders like waiver of premium on disability, Critical Illness cover, etc.
5. Policy Tenure: Consider the policy tenure up to 65 or 70 years of your age. By this age, you will likely be retired and will not have active income to pay premiums, and your dependents are usually financially independent.

These are the common checkpoints to buy term insurance,  additionally, select the best-fit plan for you. You can connect to the Nupen Assets Team for assistance.

Let Nupen Assets Help You Get This Right

Book a session with our expert team to consult your financial plans. First 25-minute consultation is completely free of charge.