CRISIS

 Just a few days ago I was talking to one of my friends, came to know that they are planning to take a loan for the higher education of their child. The second one is reading the interview of the LIC chairman for the proposed IPO.

In the first instance, it was surprised me that they have not planned for or kept any money for higher education but they kept money in the form of land parcels in the nearby area.

When we talked further, surprisingly things came out that they are surrendering the insurance policy for the same, getting money at the age of 60+ is not easy.

When we concluded the talk, we have a clear picture that they have thought the money required for education and annuity very lightly

The disturbing fact came in the interview, that out of 150000 nos of people who died in pandemic only 15000 to 20000 nos of people have protection planned for themselves, it is not known which type of protection and quantum of protection they have taken.

It means that when we think of family we only think about today's expenses as well as near-term expenses but the long term is not on the radar or we all together refuse to take a decision on it.

Now the question arises that when we take things in this manner how will we complete the aspiration of ourselves.

In the first case, they say that decision was taken because all of our staff members were taking the land at that time They did not think for any investment which will come in handy for these type of situation As their job will end in a year or two They have the only option left with to live the life with small saving they have. Or meager rent they are getting  from there

If only 20000 odd people have taken protection for their life, we consider that they have taken complete cover, Which is highly impossible as per our experience, what will happen to the family, as savings and investments vs expenses are not on the same page.

The majority of investors think that taking protection and savings for a long or keeping investment for a long time is not the solution. Thinking that earning will come indefinitely so to complete. Here others who have not taken any protection are the most vulnerable ones as their immediate family does not have any option but to pay the dues with their own money.

Lastly in the conclusion, the only thing which we want to show you is that the savings and investment is needed in every wake of life span not only in crisis, keep your habit of investment and savings throughout the life & when any emergency arrives stop or withdraw the savings and investment on a priority basis. If other options are their please use that option first, if possible use other means to settle the issue, not through savings and investments.



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