When it comes to money, most people think only about saving. But true financial planning is much bigger—it’s about protecting your family and securing their future. In this Kabir Vani Podcast episode, financial advisor Kalyan Kumar Biswal shares practical lessons on life insurance, financial discipline, and why term plans are the foundation of security.
Why Life Insurance Matters
Life can change overnight. A single unexpected event can turn stability into crisis. That’s why life insurance is not a luxury—it’s a necessity. Biswal explains how term insurance offers the highest coverage at the lowest cost, ensuring your family remains financially stable even in your absence.
Term Insurance vs Other Plans
Many companies push expensive products like ULIPs or money-back policies because commissions are higher. But the truth is simple:
- Term insurance: Low premium, high coverage, true protection.
- Other plans: Costly, lower returns, often mis-sold.
As Biswal notes, “I earn the least from term plans, but my clients gain the most.”
Three Golden Steps in Planning
- Emergency Fund – Keep at least a few months’ expenses aside in cash or savings.
- Health Insurance – Rising medical costs can wipe out savings overnight.
- Life Insurance – Protect dependents with a cover 20–25 times your annual income.
This layered approach creates true security for any family.
The Right Age to Start
The earlier you start, the cheaper your premiums. Buying insurance in your 20s or early 30s locks in low rates for life. Waiting until 40 or 50 means higher costs and tougher eligibility due to medical checks.
Myths & Misconceptions
- Myth: Insurance is an investment.
Fact: Insurance is protection. Investments belong in mutual funds or other assets. - Myth: LIC is always best.
Fact: Claim settlement ratios and hidden terms vary—always research before signing. - Myth: Only breadwinners need coverage.
Fact: Joint life policies for spouses can protect families better.
Hidden Clauses Everyone Must Know
One overlooked clause is the Married Women’s Property Act (MWPA). Checking this option ensures insurance payouts go directly to your spouse, not creditors. Small details like this can save families from financial loss.
Mental Health & Coverage
Life insurance is evolving. Since 2017, policies in India also cover mental health conditions and therapy. Awareness of these inclusions helps families make informed choices.
Try This at Home
- Calculate your coverage: Multiply your annual income by 20.
- Review your policies every 2–3 years as your income grows.
- Never sign without reading terms—look beyond the “cheap premium” pitch.
FAQ
Q1. What type of insurance is best for young professionals?
Term insurance, as it provides maximum coverage at minimum cost.
Q2. How much life cover should I take?
At least 20–25 times your current annual income.
Q3. Do joint life insurance policies make sense?
Yes, but only if both partners share equal commitment; otherwise, separate policies are safer.
Q4. How often should I review my policy?
Every 2–3 years, or when there is a major income or lifestyle change.
Q5. Does life insurance help create wealth?
No, it creates security. Wealth creation should be handled through mutual funds, SIPs, or other investments.
Final Takeaway
Financial freedom begins with responsibility. As Kalyan Biswal emphasizes, emergency funds, health insurance, and term life insurance form the strongest foundation for a secure future. Protect your family, plan early, and review often—because true wealth is peace of mind.
You can listen to the full conversation with Kalyan Biswal on the Kabir Vani Podcast, available on Spotify, Apple Podcasts, and Amazon Prime Music.
