5 reasons why you should be whacked: ~If you are planning to buy the iPhone 6 but don’t have Term Insurance~

The last day I was reading the newspaper when a certain article caught my eye. The article read,” iPhone 6, 6 Plus launch weekend sales hit 10 million, break record.” On reading the article I found out that the new iPhone 6 which was much awaited sold a whopping 10 million models in just 3 days after its launch on September 19, 2014. I choked on my cereal, (yes, I was having breakfast that time) when I saw the price of the phone. The price range started from Rs.70, 000 approximately and crossed the 1 Lakh mark under various models. On further research I found that before its targeted launch date, the phone found its way in the Grey Markets where it was sold for about 1-2 Lacs. Surprising!! I couldn’t understand the brouhaha over the phone but that isn’t what made me write this article. The reason lies somewhere else. Almost 2 days later, another article caught my eye which stressed on the lower penetration of insurance in India. Lack of wealth, aversion to insurance and the consequent premium, lack of awareness, etc. were cited as the most common reasons of the low penetration. This made me think. In a country where about 80% of the population is below poverty line and of the remaining, a huge majority shy away from buying insurance just because of the expense called premium, how did iPhone 6 manage to sell so many units in such a short time?

This perhaps is the basis of my article – iPhone 6 or Insurance, which product holds better attraction? My answer – iPhone 6, hands down!! Okay, so I don’t need a high and mighty- eye opening-life changing lesson stressing the importance of insurance. I know what is important and what needs to be prioritized. But going by the general sentiments, when compared, iPhone always scores several points ahead of insurance in terms of need and importance. Don’t take me wrong, I am talking about the poor ignorant souls who think so. Just to prove that I am not among them (you can call me poor though because as much as I want to, I just can’t afford the new iPhone, tsk, tsk!!) I give you 5 reasons to whack anyone (yourself included) if they are planning to buy the new iPhone 6 without having a basic insurance coverage on their life.

1. Protection – the most basic form of insurance called Term Insurance is the cheapest product offering protection in the event of pre-mature death of the policyholder. The family is promised a lump sum amount which takes care of their lifestyle in the absence of the bread winner. The cost aspect is almost negligible compared to the benefits promised. So it gives protection in the event of crisis. Will your high end phone promise that?
2. Financial security –as said above, your term plan provides a sound financial base in the event of any unforeseen contingency (the contingency being premature death). So you will know that if God becomes cruel enough to cut your life short, your family will be well provided for by the insurance policy you didn’t like buying. Your iPhone on the other hand can make your life more risky. Oh don’t worry, it doesn’t have any technological harmful health effects, but it does make you prone to mugging! After all, that shiny phone of yours will be the object of everyone’s envy, isn’t it? Well, jokes apart, while your insurance plan provides security, the same cannot be said for your iPhone.
3. Security against liabilities – with the increasing trend of various types of loans available in the market, protecting them against lapse of repayment also became necessary. Thus, mortgage redemption term plans were launched which exclusively took care of any unpaid loan in case of death of the policyholder. So picture this, you take a loan for your dream home and if you die before paying it off who will take care of the unpaid part? Your coveted iPhone?
4. Cost – I reported earlier the cost of iPhone 6. Starting from around 70K, it hardly is easy on the pocket. Comparatively, your Term Plan will cost you somewhere up to 10K for a cover of 50 Lacs (age being about 35-40 years). If you can afford the basic model of the phone, you sure can spare 10 grands for your insurance, can’t you?
5. Prudence – Well, I guess, this is perhaps the last point I can reason with. We all know what Insurance does for us and the part it plays. We also know what part our phone plays in our life. So, yes, both are important but the question is which needs priority. Any prudent investor knows that financial security is of more consequence than establishing one’s status. Your term plan will come handy in emergency and obviously needs priority over your pocket.

This has been a long article, any more and it will bore my readers. So, go buy that elusive iPhone 6 and flash it around among your peers (you will definitely be the center of their jealousy!!). But before that, go and invest in a sound Term Plan and buy peace of mind.