Page 79 - #letter to son

#SangamNiti DUSK DIARIES
With a rudimentary understanding of life insurance, these companies
charged a standard premium, irrespective of the mortality risk.
As insights grew over the years, this soon gave way to actuarial and
underwriting sophistication that weighed mortality and other risks
before charging a commensurate premium to the customer. This
ensured the sustainability of the enterprise.

However, the insurance industry narrative of today has been built
on permeating the sense of fear down the spine of the consumer. A
suggestive advert comes to mind – A presumably dead man suddenly
waking-up and exhorting the viewer to buy a life insurance policy
before it is too late. “Before it is too late.” These are the catch words. And
using the medium of death, it tends to induce the sense of fear.

But isn’t it a paradox that the benefits of life insurance can accrue only
upon the death of the policyholder – so why shouldn’t life insurance be
called ‘death insurance’?

The insurance industry today has emerged as a huge money-making
machine – so large in fact that their surplus cash is used as equity
bailout for government-owned companies, as is the case in certain
countries. In fact, one of the richest men on this planet has built his
wealth on the foundations of insurance. While the benefits of insurance
cannot be denied, the way the industry functions can certainly improve.
Companies have to stand alongside customers in the moments of truth.
They have to simplify their commercial terms and also ensure they
invest time and effort in making insurance affordable and available to
all those who need it the most.

Being a farmer at heart, I’ve also noticed that Government insurance
schemes in the developing world continue to be inadequately
formulated, paying farmers late or not at all and, inexplicably, ensuring
that the insurance companies make money even when they should be
paying out.

So my son, your values are your insurance. Your knowledge, your
ambitions, your hard work, your honesty and your sense of empathy are

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