Which form of life insurance is the “Best One”?

This is a short Story: The Tale of Arjun and His Insurance Dilemma

Once I got an opportunity to meet an investor in City A. His name was Arjun. Arjun was a responsible and caring father, always looking out for his family’s future. One day, he received the most joyous news—he was blessed with a beautiful baby boy. His heart swelled with love, and thoughts of his son’s future immediately began swirling in his mind.

Not long after, Arjun received a call from an old school friend, Ravi. “Congratulations, Arjun! I heard the good news,” Ravi exclaimed. They chatted for a while, reminiscing about old times. Then Ravi asked, “So, have you thought about securing your child’s future with a good insurance plan? I heard about these fantastic children’s plans from my relationship manager at the bank.”

Arjun was intrigued. He had heard of these plans but wasn’t sure if they were the right choice. The thought of securing his son’s future was appealing, especially with the rising costs of education and the uncertainties that lay ahead. But something in his gut told him to be cautious.

That evening, he sat down with a cup of tea and thought about Ravi’s advice. The idea of a children’s plan sounded perfect—after all, who wouldn’t want to ensure their child’s future? But Arjun was a prudent man and decided to seek some advice.

The next day, Arjun called his friend Vivek, who was known for his wisdom in financial matters. “Vivek, I’m thinking about buying an insurance plan for my son. Ravi mentioned these children’s plans, and I was wondering if it’s a good idea.”

Vivek listened patiently. After a moment, he replied, “Arjun, I understand your concern for your son’s future, but let me tell you something. These so-called children’s plans are nothing but marketing gimmicks. They’re designed to play on your emotions and make you believe they’re essential, but in reality, they’re often low-yielding and complicated.”

Arjun was puzzled. “But Vivek, how do I ensure my family is protected?”

Vivek smiled and said, “It’s simple. All you need is a plain vanilla term insurance plan. The thumb rule is to have life cover of 10 to 15 times your annual earnings. This way, even if something happens to you, your family will be financially secure. Life insurance is about providing peace of mind, not making money. Don’t get lured by the idea of insurance as an investment.”

Arjun thought about it. “But what about the ULIPs and other guaranteed plans I’ve heard about?” he asked.

“Arjun,” Vivek continued, “those are often traps that mix insurance with investment, and they rarely perform well. What you need is a simple term plan without any added riders. It’s the most affordable and effective way to protect your loved ones. You see, life insurance isn’t about getting rich; it’s about ensuring your family’s well-being when you’re not around.”

Arjun felt a weight lifted off his shoulders. Vivek’s advice was clear and straightforward, just like the man himself. Arjun thanked his friend and decided to follow the path of simplicity. He chose a term plan, knowing that his family’s future was now secure.

From that day on, Arjun felt a deep sense of peace. He knew he had made the right choice for his son, not by falling for flashy promises, but by understanding what truly mattered. And with that, Arjun continued to cherish every moment with his family, knowing that come what may, they would be taken care of.

MORAL OF THE STORY : – And so, the tale of Arjun and his insurance dilemma serves as a reminder that sometimes, the simplest solutions are the best. Life insurance isn’t about making profits; it’s about providing security, peace of mind, and love that lasts beyond a lifetime.