A safety net full of holes

Summary: Most people own life insurance. Far fewer have the kind that would actually protect their family if something went wrong. Insurance is one of the simplest ideas in personal finance, yet policies today are layered with riders, bonuses and “guarantees”. That’s why most families end up with insurance that looks comforting on paper but does very little when life actually goes wrong. This section takes you through term insurance, the purest and, for us, the best form of life cover. Why term insurance matters Since investors focus on tax breaks and guaranteed returns, many households end up severely under-insured. A typical endowment or ULIP buyer pays Rs 1–5 lakh a year and receives a cover of just Rs 10–50 lakh. That payout may keep the lights on for a few months, but it cannot secure a f

This article was originally published on December 20, 2025.