9 most asked questions about Term Insurance

How does claim settlement work in case you have more than one term insurance policy? Does term insurance provide cover outside India? What if I suffer from some major illness or start smoking after buying a term insurance policy? How easy is it to get a claim from a private insurance company as compared to the state-owned Life Insurance Corporation of India (LIC)?

I am sure you must be concerned about all these questions if you have a term insurance policy or planning to buy one.

Today, I will answer some of the most asked questions, which an individual has in his mind, about term insurance. These questions if left unanswered would not only lead to fear, but may also delay one from taking the right decision.

term insurance

Please note: The following questions and answers are only for term insurance policy and are generally true for any company’s term plan. However, very rarely these questions and answers may differ across insurers.

1. Do Term Insurance pay in case of Accidental Death?

Yes, term insurance pays in case of an accidental death. The sum assured or cover taken under the term plan will pay the claim if the death has occurred due to any reason, be it natural or accidental death, or death due to some illness.

There are certain riders (additional benefits) such as accidental death benefit, permanent disability rider and critical illness rider. By buying/adding these riders to the policy, a policyholder can ensure that his nominee will get an amount over and above the basic sum assured (due to any of the rider-related incidents).

2. Does Life Insurance covers death outside India?

Yes, term plans cover death outside India provided the policyholder has updated this fact with the insurance company. He needs to mention that he now lives outside India. Just like change of phone number, address or nominee, there is a facility in the policy service form where the policyholder has to mention that he is going abroad.

However, if he is going to a country that is marked as unsafe like Pakistan, Burma, Somalia etc., then the company will decline this facility. Otherwise, this cover will be valid in other countries like US or UK.

3. To what extent Pvt Insurance companies investigates death compared to LIC?

There is a difference between early claim and normal claim. If a claim arises within the first two years of buying the policy (This period varies from company to company), the company investigates extensively before settling the claim.

You can very well understand if someone has a cover of Rs.50 lakh by paying Rs.7,000 annually (And he has taken this policy on monthly basis, i.e. paying around Rs.600 monthly), then the company is at a great risk. Hence, the company will doubly check everything to settle the claim.

In normal claim, premiums are paid regularly and the policy is in force for a long period, say 12 to 15 years. In these cases, there are not much issues in getting a claim, be it LIC or any private company.

4. If I buy a term insurance policy today, can its premium change in the future?

Unless and otherwise it’s mentioned in the policy document. Premium of a term insurance remains the same throughout the term of the policy provided everything remains the same with the policyholder. That is, the policyholder has not developed any illness or any smoking/drinking habit.

On declaring any such thing, company might apply loading and thus the premium amount changes.

5. What if a person becomes a smoker after some years of taking the policies?

If the policyholder has developed any habit, like drinking or smoking, after buying the policy, he generally does not have to disclose this fact to the company at all, unless it’s clearly mentioned in the policy document

6. What if a person was a smoker long back but not at the time of taking the policy?

Depends on the policy, but just for example, the Kotak Life Insurance proposal form mentions that the client has to declare whether he was a smoker or drinker earlier also even if he has left that habit long ago. Please see page 4, question 10.3 of this document . However, I am not sure about other companies. Also, it depends on the company whom they consider as a non-smoker at the time of issuing a policy.

For example: Max New York Life Insurance, for its Platinum Protect (term insurance), considers people, who have left smoking more than three years ago, as non-smokers. So please check the company’s rule 🙂

7. What kind of deaths are not covered in term insurance?

Some important facts, which most of the people are unaware of, are that most companies exclude “Death due to Terrorist Attack”. Although such claims are settled on humanitarian grounds later on when the nominee approaches Insurance Regulatory and Development Authority (IRDA) but such exclusion is there in most companies.

Other important fact, which public at large is unaware of, is that insurance companies do not cover death due to war or natural disaster like earthquake/tsunami. Because in these cases, death toll is high and the claim to be settled runs in crores of rupees which is difficult to settle by the company all of a sudden.

Therefore, these facts should also be kept in mind while buying a term insurance.

8. How to take care of claim settlement in case of more than two policies?

The very first thing, in these cases, is to declare in the proposal form that you already have a policy from an XYZ company. (There is a column in every company’s proposal form, which a client has to fill if he has an insurance policy from the same company or any other company).

Once such information is provided, then at the time of claim, the usual practice is to submit the Death Certificate to the insurance company with whom the policy is running for the longest period. Other companies are then informed of the procedure due and an acknowledgment from the FIRST Company is provided to them which are accepted by other companies.

Moreover, of late, it has been reported that generally insurance companies do not ask for an original death certificate to settle the claims, even a photocopy of the certificate will do. So be alert while filling the form and provide all the information about your previous policies to prevent even a minor problem later on.

9. Can NRI’s buy Term Insurance?

They can, but there is a catch. As a general rule, a person has to be resident in India to take up insurance policy from an Indian Company, reason being the documents required by the company like Address proof/age proof are to be for some place in India.

Moreover, if the Sum assured required is more than 50 lakhs or so, customer is required to submit his financial papers such as last 3 years ITR or Form-16 which again should be done in India only. Last thing, medical tests would be done at some medical center affiliated to the insurance company near the address of the client which again should be in India.

So these are reason why insurance might have been declined to some NRI.

So one way which might work is this , If a NRI wants to take Insurance, then on his/her next visit to India he should submit his proof of residence, age, last 3 years ITR etc. and get his medical done at his Indian address. This way he can get his policy issued very easily.

However, there is no need to complicate it and in-case you are out in some country and plan to be there for next couple of years, the best thing would be to take term insurance from your country of residence and later when you come back to India, you can buy term insurance that time.

Watch this video to know some more FAQ’s about term plan:

Comments Do you have any other doubts in Term Insurance which are not covered here? Which one out of the above 9 did surprise you most?

The inputs are provided by Dhawal Sharma, who is an agent for Kotak and Max Bupa.

Ask your doubts at Questions & Answers Forum

From long I could see that their is a need of a good platform for you all to ask questions and get them answered . We have a lot of smart people on this blog and why not utilize their knowledge in answering everyone else doubts. So I was working from last few days on a Question & Answer platform which has neat interface structured way of asking questions and other cool features. So finally I have have a forum which is very neat and has a very simple interface to ask questions. Users can register there and then become a member and help others to solve their queries and also share new things which they learnt. Dont forget to register and ask questions to win some prizes (read till end) . Click Here to go to Forum

JagoInvestor Forum Features

Some features of the forum

  • You can ask a question and give a category like mutual-funds , real-estate , life-insurance etc along with tags to them .
  • Other readers can reply to questions asked
  • The best thing about forum is that you earn points when you give a great answer and others like it (There is a thumbs up or down button with each reply.
  • Top 5 users with highest points are displayed on the forum
  • For each user you can see all the questions asked and answers by him.

Forum Link : https://www.jagoinvestor.com/forum/

Rich User Profile

JagoInvestor Forum User Profile

Another best thing about the forum is that each user can have his profile page and can showcase his information about his website , twitter and Facebook profile and all the questions and answers he has contributed to. It also shows how many votes you have got from other users who liked your answer and this helps in showcasing your knowledge. You can also provide your description about your self  in detail so that others can know you . I would request every one here to get involved in the forum and ask questions , how ever silly they are and there are many (really many) smart people around who can answer those questions . I can guarantee they will not be unanswered (may be late answered) .


Top 3 winners

Within next 30 days starting from today, the top 3 users will get book called “Retire Rich Invest” by PV Subramanyam delivered to their home 🙂 . The 3 winners will be

  1. User with top number of points One random user from the list of all users
  2. User with most number of answers given (one liners just for the sake of answering will not be considered)
  3. User with most number of questions asked

100 Complimentary gift for registrations

For the first 100 people who ask any question, I would send them

  • A personal finance management excel sheet
  • An ebook on Mutual funds 🙂

Winners will be announced after 1 month . Note that users who have already registered would be considered 🙂

Please post your comments and feedback

Register Complaints to IRDA regarding Insurance matters

Do you face issues while dealing with your Insurance Companies ? Do they dont answer you on time or dont entertain your genuine concerns on time ? Are you having a problem with Claims or other issues with an insurance company ?

Should you Complain ?

Incase you are facing issues like unsatisfactory answers , no replies on time , delay in replies, taking matters for granted and not treating you properly, any misselling in Insurance, you can complain to IRDA about all this , its just a call away, hence better use the facility and dont feel like you are not powerful enough. You can also mail Insurance companies and cc the IRDA email id for complaints for faster and better reply, but only incase you are facing issues , dont spam them 🙂 . Here is a nice Video Advertisement from IRDA called IRDA – Apki Suraksha ke Liye . I hope they do things in real life also the way they show in video 🙂

Call centre

IRDA (Insurance Regulatory and Development Authority) has started a new service where you can approach by phone or E-mail and complain against your Insurer. There is a call centre started by IRDA for registering grievances on policy-related matters. The call centre will provide an easy and convenient way to bring complaints to the notice of the IRDA. the Toll Free Number is 155255 and Email for complaints is [email protected] . Before the complain, you can approach the Insurance Ombudsman where the dispute involves amount lower than Rs 20 lakh. You can find the contact mail address of the Insurance Ombudsman of your region from IRDA’s Web site.

Do you think its a good resource and would be of help to consumers or will fail just like other projects ? Comments ?sha

EPF interest rate increases to 9.5% for 2010-2011

On 15 September 2010, the Employees’ Provident Fund Organisation (EPFO) raised the interest rate for EPF accounts by 1% for 2010-11. The organisation increased the interest rate to 9.5% for 2010-11 from 8.5% in the previous year. This 9.5% is the highest in the last five years. However, one needs to understand that the 1% increase is only for EPF accounts and not for Public Provident Fund (PPF) accounts. A PPF account interest rate will continue to remain 8%. The EPFO is one of the largest provident fund institutions in the world. An EPF is a retirement benefit provided only to the salaried class. Each month, a small amount of money is deducted from an employee’s salary which is invested in his EPF account. The employer also contributes an equal amount.

Note that from 2011, EPF will become the top product in the debt fund category as there is no other “safe” products which gives 9.5% or anywhere closer to that post tax. Also, the money received from EPF is tax free after five years. Hence, in the long run EPF is the best option to invest your money. Thus, make sure you invest part of your salary in EPF account. A lot of employees take their entire salary and prefer not to invest in EPF accounts. Also, many employees withdraw their EPF money after they get a new job or just leave their account inactive.

Be Happy but don’t be very happy

“EPF becomes the best debt instrument” is surely good news from return point of view. But, the 9.5% interest rate may not be for long-term. The 1% increase in the EPF has happened because the EPFO has Rs 1,700 crore of surplus money lying in the interest suspense account. Suspense account is the account which has all the unclaimed PF money.

What about Trusts managing their own Providend Funds ?

Note that all the companies do not contribute to EPFO-managed EPF, but they manage their employees provident funds through their own trusts, Now they will have to match this 9.5% interest and it would be a tough thing to achieve . Most probably , a lot of trusts are going to appeal to the finance ministry, that this 9.5% interest rate proposal is taken back , but it looks unlikely to happen (Read more)

EPF money investment in Stock Market ?

An EPF is a long-term investment which salaried individuals have. Hence, some amount of it can be invested in long-term equity instruments. According to the finance ministry, some amount of EPF can be invested in the stock market. But, the central board of trustees (CBT) don’t agree with the same. The CBT has decided not to invest in the stock market. The labour minister Mallikarjun Kharge, who also heads CBT, says, “We had received a letter from the finance ministry asking for parking of a portion of EPFO funds in the stock market. We have received huge opposition from CBT members who oppose the idea of investing in stock markets.” As of now, the EPFO maintains a huge corpus of approximately Rs 3 lakh crore.

No Interest on Dead Accounts ?

Earlier, employees would just leave their jobs but, their EPF accounts would earn interest. However currently, that’s not the case. Now, the accounts, which are not operated for the last three years, will not earn interest. So make sure you either withdraw money from your EPF account or maintain the account. According to EPFO estimates, there are a total of 47 million accounts, of which 30 million, which means 60%/around 57% are inactive accounts. Out of the 30 million inactive accounts, around 10 million accounts (that is 33%) have less than Rs 500 balance.

The EPFO mentions that maintaining inoperative account is quite expensive. Hence, the organisation has decided to stop crediting interest in all the inactive accounts which have not received contributions in the last three years. (Read this article.)

Comments ? What do you think about this move ?

Invest in Gold and Silver through E-Gold and E-Silver

The traditional, age old ways of buying gold have been ways like gold ornaments from jewellers or coins, bars, biscuits from banks or jewellers. However, since the last few years, new ways of buying gold have emerged. These include buying gold in demat form (electronic), through gold futures, gold ETFs and the latest one is E-Gold. So what is this E-Gold? This article makes an attempt to throw some light on this new product.

What is E-Gold?

The National Spot Exchange Limited (NSEL) has introduced E-series products in commodities. To start with, they have launched E-Gold and E-Silver. Later on, they also plan to cover few other metals and also some agricultural commodities in the same series.  Trading in E-Gold has been on since 17th March 2010. E-Gold units can be bought and sold through the exchange (NSEL) just like shares. Here one unit of e-gold is equal to 1 gram of gold. For long term goals like accumulating gold for children’s marriage, retail investors can buy e-gold in small quantities in their demat account over a period of time. Once their target is achieved, the individual can take physical delivery of gold through the exchange. By buying gold in electronic form (demat), the individual need not worry about the purity of gold, storage costs and the insurance of gold. If the individual has bought e-gold only for investment purpose and does not need to take delivery of physical gold, then he can always sell the e-gold units and encash them. How to invest for Child related Goals

Requirements for E-Gold

To buy E-Gold units, the individual needs to open a demat account (beneficiary account) with one of the impaneled Depository Participants (DP). The list of the impaneled DP’s is given on the NSEL website (or see the list below.) Retail individual can place buy and sell orders for e-gold units with their broker through phone or through the internet (broker’s website). Investing in E-Gold or other metals opens up one more asset class for retail individuals to diversify their investment portfolio. It provides a means to buy, accumulate and sell E-Gold as well as to convert the same into physical gold. To invest in E-Gold you need to have your Demat account at any of these places… India Infoline Ltd, Karvy Stock Broking Limited, Geojit BNP Paribas Financial Services ltd , Anand Rathi shares & stock brokers ltd and many more.

[DDET Click Here to see the Full list of DP’s]
Globe Capital Market Limited
Religare Securities Limited
Goldmine Stocks Pvt. Ltd
M/s. IL & FS Securities Services Limited
Karvy Stock Broking Limited
Monarch Project & Finmarkets Ltd
SMC Global Securities Ltd
SSD Securities Limited
Alankit Assignments Ltd.
Zuari Investments Ltd.
Stock Holding Corporation of India Ltd.
Aditya Birla Money limited / Apollo Sindhoori
India Infoline Ltd.
Master Capital Services Ltd.
LSE Securities Ltd.
Geojit BNP Paribas Financial Services ltd
Farsight Securities ltd
Eureka Stocks & Share Broking Services limited
Microsec Capital ltd
Ashika Stock Broking limited
Anand Rathi shares & stock brokers ltd
IFCI Financial Services limited
These are also known as empanelled DPs

Delivery Centres

If an individual wants to take physical delivery of his e-gold units then he / she can take it in multiples of 8 grams, 10 grams, 100 grams and 1 kg. To start with the exchange has delivery centres at Ahmedabad, Delhi and Mumbai. In due course of time the exchange plans to open more delivery centres in other cities. India for long has been the largest consumer of gold in the world as Indians love to buy gold. But since last few years because of the steep increase in the price of the yellow metal, it is getting further out of reach of the common man. By introducing the E-Series range of products, NSEL is focusing on the affordability factor by keeping one unit equivalent to 1 gram of gold which makes gold affordable once more, for the masses.


The Exchange shall levy the turnover charges of Rs. 20 per lakh of turnover to both buyer and seller member on monthly basis. This shall be applicable on all executed transactions. Storage charges shall be levied by the Exchange on monthly basis. Such charges will be computed based on the holding in the respective accounts on the last Saturday of every month. The charges per month per unit of E-GOLD will be 60 paise only. For conversion of e-gold into physical gold as per the current rates, VAT will be 1 % of the value of goods. In case physical delivery takes place in Mumbai, octroi @ 0.1 % of the value of delivery will also be applicable. Interested readers can read in detail in this circular


Though the product serves the purpose of common man of accumulating gold in small-small quantities over a period of time, not many people are aware of this product. To make it a success NSEL will have to create awareness about this product through various investor education channels, so that people realise the benefits of this product. How they go about doing this, remains to be seen.

This is Guest post by Gopal Gidwani , who writes on his blog BachatKhata.com . I have edited it with more information and added the chart .

Two awesome and hidden Health Insurance products

Today, I will discuss about two  Health Insurance policies which are not very known or popular. However, these policies are unique and reasonably priced. These policies are sold by National Insurance Company Ltd and Oriental Insurance Company Ltd. The insurance policies, which I am talking about, are not single products but a combination of two or more products to create a single good product. You can consider these policies by investigating further and if they meet your requirements.  (Read Basics of Health Insurance)

Vidyarthi – Mediclaim for Students

Sold by National Insurance, Vidyarthi is designed to provide health and personal accident cover to the students. It also provides for continuation of insured students education in case of the death or permanent disablement of the guardian due to accident. The premium for hospitalisation expenses is substantially lower compared to a standard Mediclaim Policy.


  • This policy is for students aged between 3 years to 25 years. Sum insured ranges between Rs 50,000 to Rs 4 lakh.
  • Any registered institution affiliated to any state board, council, university and All India Council for Technical Education (AICTE), University Grants Commission (UGC) or any other government statutory authority, in India, may take this policy.
  • Educational institutions may also take a group policy covering named students enrolled with them.
  • Parents/guardians of students may also take this policy.
  • The policy also provides for continuation of insured students education in case of death or permanent disablement of the guardian due to accident.
  • Sum insured under this policy shall be progressively increased by 5% in respect of each claim free year of insurance subject to maximum accumulation of 10 claim free years of insurance.
  • The policy also provides group discounts ranging from 10% to 30% depending on group size.

Cost Structure

Now, if we look at the premium table given below, for health insurance of Rs 1 lakh for a student, parents get personal accident coverage of Rs 2 lakh and the student also gets personal accident coverage of Rs 50,000. The premium for this plan is Rs 1,111 per year which is below the average price of medical insurance purchased from any other insurance company for sum insured of Rs 1 lakh for the age up to 25 years.

Scope Of Cover

  1. Room, Boarding expenses as provided by the Hospital/Nursing Home.
  2. Nursing expenses.
  3. Surgeon, Anaesthetist, Medical Practitioner, Consultants, Specialists Fees.
  4. Anaesthesia, Blood, Oxygen, Operation Theatre Charges, Surgical appliances(any disposable consumables subject to upper limit of 10% of Sum Insured), Medicines & Drugs, Diagnostic Materials and X-Ray, Dialysis, Chemotherapy, Radiotherapy, Cost of pacemaker, Artificial Limbs and cost of Stents and implants

* Service Tax Extra

The main reason why this product is not known to public is because people by themselves never take the initiative to find something better. Sometimes intermediaries, to whom people consult and buy insurance, are not aware of such products. In other countries, like US and UK, universities and colleges have made it mandatory for students to have health insurance which is not the case in India. If universities and parents take the initiative, then they can provide something better to their children as well as themselves through this product.

People can buy Vidyarthi from National Insurance directly or through the agents of that company. There are many other companies like Tata AIG, ICICI Lombard which offer similar kind of products but they are not as good as this one.  (Read details in Policy document)

Nagrik Suraksha Insurance

This is a master piece product from Oriental Insurance Company. Nagrik Suraksha is also a combination of personal accident coverage and medical insurance. This policy not only provides personal accident insurance, but also hospitalisation expenses on account of accident which other insurance companies fail to provide. In this policy, 80% of your coverage amount is for personal accident, and the remaining 20% is for hospitalisation on account of accident.


Suppose you take insurance coverage amounting to Rs 1 lakh. Out of Rs 1 lakh, Rs 80, 000 is for personal accident and the remaining Rs 20,000 is for hospitalisation on account of accident. The premium to be paid for coverage amount of Rs 1 lakh is only Rs 90 for the entire year. If you buy insurance coverage amounting to Rs 4 lakh, you can get personal accident coverage worth Rs 3.2 lakh and hospitalisation expenses worth Rs 80,000 by just paying Rs 360 for the entire year.


  • Minimum sum assured is Rs 1 lakh, while the maximum is Rs 5 lakh.
  • Policy period ranges from 1 year to 4 years.
  • Coverage is also provided outside India, but the claim settlement is done only in Indian currency.
  • A discount of 10% of the total premium will be allowed comprising the insured and any one or more of a) Spouse, b) Dependent children c) Dependent parents.
  • Group discounts available.
  • This insurance is available to person between the age of 5 years to 70 years for family package and 18 years to 70 years for individual(s)/group cover.

Premium Chart

* Service Tax Extra

You can buy Nagrik Suraksha from either agents of Oriental Insurance or from the company directly. This is really a gem of a product and most suitable for people who are looking at some exotic products and not just plain vanilla kind of offerings.  (Policy document)

This is a guest post by Kashyap Juthani from pocketsafe.in , I have added the charts and have done some minor additions and modifications .

3 thought provoking questions before you buy real estate

We have discussed Buying vs Renting in previous articles. This post is not about saying which method is superior. While buying a flat/house is everyone’s dream, there are some very important questions one needs to think about before buying real estate property. Most buyers aren’t putting in enough thought, about some critical points (which they need to). One reason could be that they are far too obsessed with increase in value, are overconfident about the returns they can generate in real estate in long run or probably because these critical points haven’t yet crossed their mind. But if you are thinking about buying real estate, you should be aware of these points…

House in India

Image source

1. What is the Construction Quality of the house & what will be its condition after decades ?

If a property comes from a great builder, does it mean it will be in existence or in great condition after 40-50 yrs? What will be the condition of the building or how much it will be in demand by others at that time?  Most of the buyers think about immediate requirement and may be 10-20 yrs hence. But should your vision be just 10-20 yrs when you are putting such a huge amount in Real estate?  Also real estate construction is going to continue for next 20-30-40 yrs for sure given the amount of demand in our country . So who all are going to invest/prefer in your house which is 30 yrs old in 2033 ? Will there be a situation when the prices instead of appreciation, actually starts depreciating because of bad condition ? To understand what I am saying just look at some building/flats which are constructed before 20-25 yrs in your city , look at that and ask yourself “At what price are you ready to buy it? , or do you at the hand want to buy it or not?”

How many of us have seen houses which are 50 yrs old today? Not many; houses which are 50+ yrs are a handful. I know when I say this, it’ll cast a pall on the quality of builders in these times. Already there are enough instances where quality construction is compromised and owners do not get the property in the same condition as they were promised! . (Learn some tricks of understanding construction quality here and here)

Another thing which happens is when a person gets a house in possession the house is all well-built, its shining and everything looks perfect. But is a healthy looking person also with high stamina? Can we judge a houses’ stamina and internal strength on how it looks, how jazzy its tiles are and what a wonderful balcony it has? No! . We really need a long time like 30-40 yrs to really have a good insight in how strong a house is. Anything will last first 10-20 yrs . Here is a video which shows how a real estate buyer got his Flat in bad condition from one of the most reputed Builder and not at all in what they were promised . Looking at the video , I don’t think the house will last for more than 30 yrs .

2. Where are you going to be there after 20-30 yrs ? what are your future plans ?

Most of the people keep changing our jobs in starting of their career . An average situation would be that a person changes his job in atleast 3-4 yrs (in the software industry at least). But at the time of buying a property, a lot of people do not think much about this. They make believe that this, is the final job or at least a “long-term job”. Then, once they buy the house, they are almost stuck (Link) .

A lot of times, they don’t take risks in career and don’t want to take up another exciting job or a better opportunity in other city or much far place in same city, because of the “Comfort Zone” they have created for themselves.You have to be really clear about this point. A lot of people travel back from abroad to start their new life/business in India and the first thing most of them do is buy a house. I would recommend better get settled properly first, start your new work, make sure the stability is there and then go for commitment of a house. (Read this comment)

Not just from career viewpoint, you also have to think about retirement and the post 50+ age point of view . If you are age 30 today, are you going to work for 30 yrs in Bangalore/Delhi/Mumbai etc and then live in same city to enjoy your retirement? Do you think your retirement life would be wonderful in City of Mumbai or Bangalore? If yes , then go ahead.

But personally I think I will be working in a bigger city and then post retirement. I would like to settle in a smaller city or may be my home town. So if you also think that come coastal region or some smaller town or home town village is your post retirement destination, then not buying a house can be your choice.

3. Compromise on Living style and Mental Fear ?

You also have to be clear on what kind of life style you want to live in your life, because after you take Home loan , then comes all kind of issues like

  • Fear of losing the job and not able to pay off the loan
  • Not able to live your life comfortably and not doing all the things in life which needs more money as you are committed to your Home loan
  • Not able to take high risk and satisfying job in life because of the commitment , One reader who owns a company told me that a lot of talented people do not join his company even though they have better work and opportunity to do what they truely love , just because of the uncertainty a startup brings with itself .

The finding of an exclusive CNN-IBN poll on the economy reveals that one out of two Indians is scared of losing the job. The poll, conducted across seven metros, also shows that Mumbaikars are one of the most worried about their job prospects. Link

A lot of people take more risk than they can handle and it leads to traumatized life , which effect health, Strainful life at Home, unejoyable life for many . Though on extreme end, but some cases might also end in Death .

Pune: A 31-year-old man allegedly committed suicide by hanging himself from a ceiling fan at his residence in Indrayaninagar in Bhosari.  The incident came to light only on Wednesday morning.The Bhosari police have identified the deceased as Piyush,alias Kishore Muralidhar Mahajan,of Indrayaninagar,Bhosari.  The Bhosari police said that Mahajan had been disturbed ever since he had lost his job.

He was finding it difficult to pay the monthly instalments for the flat he had recently bought.The police have recovered a suicide note which said he was committing suicide because no one was coming forward to help through his bad times, the police said.

Source : TNN

How to Save if you are living on Rent ?

Incase you are not planning to buy the house, you can always invest the money in a way that you can buy it later after some year or at the time of retirement. Long term returns from real-estate have been in range of 10-12%, but even if we take it to be 12-15% , We can invest our money in some equity which can deliver similar returns . You can put money in ETF’s or Index Funds and let your money grow overtime and buy real estate at some later point .


As I said previously, it’s not a buying vs renting debate. It’s all about thinking well in advance about your decision and knowing all the aspects of buying a house. If you are clear about all the points mentioned , then you can go ahead and buy anything.