A Real Story That Every Earning Member Should Read
In the world of financial planning, most people think life insurance and health insurance are enough to safeguard their family. But there is a third pillar, income insurance (also called disability income cover) that many Indians are completely unaware of.
Let me share a real-life incident that changed the way I look at financial protection forever.
A Friend in Rajkot, A Perfect Life, Until One Day!
A close friend of mine was living in Rajkot and had recently secured a well-paying job at a reputed private college. With a stable income, he decided to improve his lifestyle:
He shifted from a rental flat to his own home. He replaced his old car with a new one.
Like many property buyers, he had to arrange a portion of the payment in cash (black). Being an honest salaried professional, he did not have black money, so he borrowed it from unorganised money lenders, the kind known for their harsh recovery methods.
Even though the interest was high and the lenders were strict, he felt confident. After all, he had a good job and knew he could comfortably pay:
- The housing loan EMI
- The car loan EMI
- And repay the money lenders on time
He also took two wise decisions:
1. He had a Rs. 1 crore term life insurance to secure his wife and children's future
2. He had a Rs. 25 lakh health insurance policy, giving him complete peace of mind for medical emergencies
3. His financial planning seemed perfect, so he thought.
The Accident That Changed Everything
A few months later, tragedy struck. His family met with a major car accident. The car was completely totaled but thankfully, auto insurance covered the loss. The entire family required hospitalization, but thanks to a strong health cover, not a single rupee had to be paid out of pocket.
But while the family survived, he suffered serious physical injuries. Multiple fractures in his right leg and severe facial injuries requiring months of recovery. This is where life took an unexpected turn.
When Health Recovers, But Income does not.
He approached his employer, expecting leave and understanding during his health recovery. Instead, the college administration said:
Exams are around the corner. We cannot afford missed classes. We are terminating your services.
His income stopped overnight.
Meanwhile, the private money lenders he had borrowed from began aggressively demanding their money back. Their threats soon escalated to frightening levels, including harm to his family.
He was now:
- Jobless
- Injured and unable to work
- Car-less
- Facing pressure from money lenders
- Unable to pay home loan EMIs
- Forced to return the flat
- And ultimately, forced to flee from Rajkot to another city for his family's safety
All this, despite having excellent life insurance and excellent health insurance.
What Was Missing?
Income Insurance, the THIRD PILLAR OF True Financial Security
Life insurance protects your family when you die. Health insurance protects you when you fall sick. But who protects your income when you are alive but unable to work? This is exactly what Income Insurance is designed for.
Income insurance ensures that even if you suffer:
- Temporary disability
- Permanent disability
- Partial disability
- Total disability
The insurance company pays you a weekly income, replacing your salary during recovery. Key Benefits of Income Insurance
- Pays up to Rs. 1,00,000 per week
- Payable for a maximum of 100 weeks (Maximum amount payable Rs. 50,00,000)
- Covers disabilities due to accidents (even burns due to fire)
- Helps you continue paying EMIs and household expenses
- Protects your family from financial and emotional trauma
Costs as low as Rs. 20 per day, less than tea and a samosa at a roadside stall
Need Guidance? We Are Here to Help.
At Baxi Investment, we specialise in:
- Term Life Insurance
- Health Insurance
- Income Insurance & Personal Accident Cover
- Family Financial Protection Planning
If you want to secure your income, understand your coverage needs, or simply want to learn more, feel free to reach out.
As financial advisors, our mission is simple: To ensure your income never stops, even when you do.
Thank you for reading. Stay protected, stay insured, and stay financially secure.
