Life Insurance and Maid Analogy
Last week both of maids of my home took uninformed more than a week long vacation, I know that’s how maids take vacations, but it does not go well when you are dependent on maids for many things and they do not answer your calls. It became very frustrating time for my wife. Incidentally, I was planning to write an article on Life Insurance topic and this week long vacation by our maids gave me a unique topic to explore. What if we can pay someone their insured amount and get him/her as a full-time maid for their remaining life.
Paying the insured amount and getting them as full-time maid seemed like weird idea at first, as an employer of maid, but it made perfect sense when I took the numbers to the paper and in fact I found it to be way cheaper then hiring a full-time maid in most cases, and that too without much obligations as theoretically dead people do not need vacations to attend family events. :)
So, I analyzed further and got down to identify three categories of insured people and how I could hire them as my maid.
Here we go.
These set of people either do not believe in life insurance and/or they think they are immortal and they are going to survive all situations till their retirement. There is nothing wrong with this kind of thinking, but this certainly means that they do not value their life and they do not expect to give any money to their family as compensation for their absence. These people are perfectly made to be our maids as they do not need any insured money, they could assume that they got hit by my car and start working at my home as a maid. Theoretically, dead people do not need to attend family events, I already said once earlier, but still I will happily give them 2 days a month vacation for recreation purpose. So if you belong to this category then leave your name and number in the comment section, I will connect with you and decide your appointment (a.k.a. death) date as per your wish.
These set of people do have insurance, but most likely they have bought it to save taxes instead of insuring their life. In most cases, they have bought some product which gives them insurance and investment both features. Insurance of not more than two or max three years of their annual pay package and Investment which gives them around 4 to 5 percentages interest, with a huge sum of premium. It will be a little expensive affair for me to get such people as a maid initially, as I will have to pay them their insured amount, but if we could make them survive for more than say ten years then they become cheaper than what currently we are paying to our maids. Don’t worry, we won’t let them die soon and will buy term insurance against them to cover my cost, they could be dumb but I am not. :) And, they are too eligible for 2 days a month vacation for recreation purpose, what else do they need.
Adequate / High Insured
Finally, these set of people are out of my range. These people have insured themselves with adequate or high insured amount, most likely more than fifty lacks. To get them as a maid I myself will have to die and pay them my insurance money, so I would rather hire a domestic helper from above two categories or hire regular maids. You know, two kings can not stay in one castle.
So, here is my funny take on Life Insurance. If you think you belong to first two categories do not hesitate to leave your name and number (optional) in the comment section.
NOTE: I have heard many insurance salesmen promoting Life Insurance by saying bad stories, but I took a different route. Lastly, I am not an Insurance Agent and neither have the intention to become one. I am very much settled in my professional life.
Originally published at The Simple Personal Finance.