Insurance: Protection or Wealth Creation?


Bangalore: Life insurance has been pitched to policy holders in such a way that it is regarded as a tool to financially protect oneself. But do people really see it as a protective shield or do they see it as a way of creating extra money. Kamalji Sahay, CEO and MD of Start Union Dai-ichi, gives his take on this dilemma.

All insurance policies are based on a big number of people contributing money and this pooled-in money is used to help the financially misfortunate due to circumstances or life-changing events - death. Insurance is so used to help people financially recuperate from such tragedies and get on with their daily lives.

As soon as the policy seeker pays the first installment, he is assured with the sense of security, both for him/her and his/her family. As life insurance does not have a better alternative, life insurance is regarded as a life-buoy.

The money insurance creates is based on small installments paid each month. These money droplets later ensure – a good life for loved ones, proper education of children, their weddings and even staring their own companies.