“Zindagi ke saath bhi, zindagi ke baad bhi.” — remember that iconic Life Insurance Corporation (LIC) tagline? Most Indians grew up hearing it from their parents while being dragged to LIC offices on hot summer afternoons. For many, life insurance is that boring file lying in the cupboard next to the wedding album and gas connection documents.
But here’s the truth: Life insurance isn’t just about what happens after you’re gone. If done smartly, it can also be a pretty decent wealth-building tool while you’re still around (and hopefully binge-watching Netflix well into your retirement).
The Desi Mindset: Insurance = Death Certificate
Let’s face it, in India, when you tell someone you bought life insurance, they look at you like you just jinxed yourself. Aunties will whisper, “Nazar na lage beta”, and uncles will nod as if you have suddenly turned into a philosopher of death.
But what they don’t realize is — modern insurance is not just about what if you die tomorrow, but also how to live comfortably till 100.
From Chai-Samosa to Crores: How Insurance Can Build Wealth
- Endowment Plans – Think of them as that friend who is boring but reliable. They don’t give you crazy stock market returns, but they give you money back at maturity. A savings plan + protection = desi parents’ dream combo.
- ULIPs (Unit Linked Insurance Plans) – These are like the millennial cousin of LIC. You pay premiums, and part of it goes into investments (equity/debt). So you’re insured and you get to ride the stock market. Risk bhi hai, return bhi hai.
- Money-Back Policies – Who doesn’t love “cashback”? Even insurance companies know Indians will fall for it. You get survival benefits at intervals, so you don’t have to wait till maturity to see your money again.
- Pension/Retirement Plans – Instead of depending on your kids to fund your Goa retirement plans (spoiler: they’ll probably be in Canada), let your insurance do the heavy lifting. Annuity plans give you monthly income when you hang up your boots.
Tax Benefits – Because Who Doesn’t Like Beating the Taxman?
Under Section 80C and 10(10D) of the Income Tax Act, life insurance premiums give you tax deductions, and the maturity amount is often tax-free. In India, this is like getting a “Buy 1 Get 1 Free” deal — you save now and later.
Funny But True: Real-Life Scenarios
Real Talk:
- That uncle who refuses to spend on insurance but spends ₹50,000 on a new iPhone every year will realize the iPhone doesn’t pay his hospital bills.
- The young IT guy in Bangalore who thinks SIPs are cooler than insurance will one day discover that insurance is SIP’s elder, more responsible brother.
- And the best one: the dad who bought you an LIC policy when you were 2 years old without telling you. Guess what? That’s the savings you’ll use for your first car down payment.
Why This Actually Works
The secret sauce? Forced Savings.
Indians are great at saving money (ask any aunty with a secret stash in a steel dabba), but we’re equally great at spending it on weddings, gold, and the latest iPhone. Insurance ensures you keep aside money regularly — and that money compounds silently, waiting for your future self to say “Shukriya.”
The Bottom Line
Life insurance is like that boring friend who never parties but shows up whenever you need help — reliable, steady, and surprisingly resourceful.
Pro Tip: Don’t just see insurance as a liability. See it as a strategy — one that saves taxes, builds wealth, and keeps your family safe.
So the next time someone says insurance is just for death benefits, hit them with this:
“Bhai, insurance zindagi mein bhi paisa banata hai, maut ke baad hi nahi.”
