The Day Ramesh Finally Understood Term Insurance

It was a calm Tuesday when Ramesh, one of my old clients, called. Arif, I need to meet you today. Too many people are giving me advice on term insurance, and I don’t know which one to trust. 

We’d worked together for years, but from his voice I could tell this was serious. When he walked into my office, he didn’t even sit before speaking. My agent says I should take a term plan till age 85 and choose the return of premium option. He says it’s the best deal for me.

I gestured for him to sit. Ramesh, you’re 30 years old. Let’s think about this logically. Imagine your life as a long train journey. You’re the engine pulling your family along. Term insurance is like the emergency brakes it’s there only for a crisis. If the journey goes smoothly, you’ll never need it. But if something happens to you, it’s what stops your family from derailing financially.

I told him about HLV Human Life Value. If you earn ₹10 lakh a year and plan to work till you’re 60, that’s 30 more years of income. That’s ₹3 crore in total earnings. Remove your own expenses, add inflation, and you’ll get the amount your family actually needs to live their life without you. That’s your term cover not a random number an agent suggests.

Ramesh nodded, but then asked, Why not take coverage till 85? Isn’t longer better? 

I shook my head. By the time you’re 60 or 65, you’ll likely be retired. Your children will be independent. Your loans will be cleared. Paying premiums for an extra 20 years is like buying petrol for a car you sold long ago. It’s money that could be used elsewhere.

Then he mentioned the return of premium option. But Arif, with ROP, I get all my money back.

True, I said, but think about how much extra you’re paying. Suppose your pure term plan costs ₹20,000 a year, but ROP costs ₹35,000. That’s an extra ₹15,000 every year. If you simply invest that extra amount instead of giving it to the insurance company, the results are huge. Let’s say you invest ₹1,250 per month (₹15,000 per year) into a mutual fund SIP at 12% returns for the 30 years till you turn 60. Here’s what happens… 

I pointed at the last row. Ramesh, ₹48.8 lakh. That’s the power of investing that extra premium. With ROP, you’d just get back ₹4.5 lakh (₹15,000 × 30 years) with no growth. Which would you choose?

He smiled. The ₹48 lakh, of course.

That’s why, I told him, term insurance should be treated only as a protection plan. You buy it hoping never to use it. But if life throws an unexpected challenge, it’s the safety net your family will fall back on.

Before he left, I also explained the riders worth adding. A Critical Illness Rider gives you a lump sum if you’re diagnosed with a serious illness, so you don’t have to dip into your investments. An Accidental Death Benefit Rider increases the payout if death happens due to an accident important for people who travel often or work in high-risk areas. And a Waiver of Premium Rider ensures your policy stays active without payments if you become critically ill or disabled. These riders are about protecting you from the big risks your term plan alone doesn’t cover.

Ramesh got up, finally looking relieved. Now I get it, Arif. I’ll keep insurance for protection and invest separately for growth.

And that’s the golden rule protection and investment don’t mix well. Keep them separate, and you win on both sides.

If you’ve been as confused about term insurance as Ramesh was, share your thoughts in the comments, click the link to book a free appointment, or connect with me directly on WhatsApp. No pressure, no sales just advice in your best interest.

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How Much Should You Invest To Reach ₹5 Crores in 20 Years?

One cloudy Thursday afternoon in Chennai, I was sipping filter coffee at my desk when a message popped up on my phone. 

Arif sir, are you free to talk? Need some clarity on investing.

It was from Ravi, a client I had met a few months ago during a corporate financial wellness session. Smart guy, 30 years old, IT professional, married, one daughter, decent salary but like most middle-class folks, he felt stuck. EMI, school fees, rent, groceries… month after month, the money would come and go.

We met at a quiet coffee shop near Teynampet. He looked serious.

Sir, I’ve been reading your blog. That ₹5 crore goal in 20 years does it actually work? I mean, I don’t have any big money lying around. But I want to create real wealth. Is it even possible?

I smiled. I’ve heard this question so many times. And every time, my answer is the same it’s possible if you start now, stay consistent, and increase your SIP each year. That’s it.

So I asked him, Be honest with me, Ravi. How much can you comfortably invest every month right now, without messing up your lifestyle?

He said, “Maybe ₹10,000. I can manage that.”

I said, Perfect. We’ll begin with ₹10,000 per month. But you’ll promise me one thing you’ll increase it by at least 10% every year. Just like your salary increases.

That was the deal. No fancy tricks. Just a commitment to stick with it.

We chose two good equity mutual funds with long-term performance history. SIP set. ₹10,000 per month. Then every March, like clockwork, he stepped it up. Year after year.

Here’s how it played out:

• Year 1: ₹10,000 per month
• Year 2: ₹11,000 per month
• Year 3: ₹12,100 per month
• …and so on

By the time Ravi reached Year 10, his monthly SIP had crossed ₹23,500. By Year 15, it had grown to ₹38,000. And by Year 20, he was investing around ₹67,000 per month.

Sounds like a lot, right? But here’s the key he never felt the pinch. Because his income was growing too. The SIP didn’t jump overnight. It climbed gradually. Just like his rent, his bills, his responsibilities.

At the end of 20 years, Ravi had invested a total of around ₹55.6 lakhs. His mutual fund portfolio, thanks to the power of compounding and an average 12% annual return, had grown to a little over ₹5 crores.

Ravi didn’t get lucky. He didn’t pick the best performing fund every year. He didn’t time the market.

He just did three things:

He started.

He stayed invested.

He stepped up regularly.

When we met again recently, Ravi was a different man. Confident. Relaxed. He told me he no longer worries about his daughter’s future, or his retirement. His financial stress was gone.

You were right, he said. It actually worked. I never thought I’d see that number in my portfolio.

And I told him the truth: It wasn’t me. It was you. You stuck with the plan. You gave time a chance to do its job.

So if you’re sitting there wondering if you can also reach ₹5 crores in 20 years, here’s your answer yes, you can. Start with whatever amount you can. Just don’t stay at the same level forever. Increase it every year, even by a small percentage.

Time and consistency will take care of the rest.

Want to build your own ₹5 crore plan? Message me. I’ll help you create it one step at a time.

Message me on WhatsApp: WhatsApp or Book a FREE consultation now

Let’s take the stress out of money, one smart step at a time.

But also remember this: time is your biggest ally. Start now. Stay steady. And one day, your money will grow enough to tell stories of its own.

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Disclaimer: Mutual Funds are subject to market risks. Past performance is not a guarantee of future returns. Please read all scheme-related documents carefully before investing.

The Magical Tea Stall and the ₹5 Crore Secret

A few years ago, I missed my train. And I’m glad I did. 

It was one of those slow evenings at a small railway station somewhere in South India. I was waiting for the next train when I walked up to a tiny tea stall, the kind that has survived everything new buildings, platforms being extended. The man running it, Ramesh bhai, looked like someone who had seen the world change around him, but hadn’t changed much himself.

As he handed me a cup of tea in a small paper cup, he asked the usual question: Aap kya karte ho beta?

(What do you do, son?)

I told him, Main investment consultant hoon. Logon ka paisa badhane mein madad karta hoon. (I’m an investment consultant. I help people grow their money.)

He gave a half-smile, stirred the sugar into his own cup, and said something that stayed with me.

Beta, paisa toh sab kamaate hain. Par badhate kaise ho, yeh batao. (Son, everyone earns money. But how do you grow it—that’s what I want to know.)

That question has come back to me in so many client conversations since. Whether it’s a young IT engineer earning ₹60,000 a month or a businessman making lakhs, they all have the same hidden question: How do I grow my money without losing sleep at night?

So I told Ramesh bhai a story. Not from a textbook, but from real life. The kind of story I’ve seen unfold over and over again.

Let’s say you decide to start small just ₹5,000 a month into a mutual fund through SIP. No market timing. No complicated stock selection. Just ₹5,000 quietly going from your bank account into a well-chosen mutual fund every month.

In the first year or two, nothing magical happens. Your money grows, yes, but not in a way that makes you want to scream with joy. But here's the thing compounding is not exciting in the beginning. It’s like planting a mango seed. You water it, care for it, and for the longest time, it looks like nothing’s happening. But underground, magic is brewing.

Let’s say this ₹5,000 monthly SIP gives you an average annual return of 12%. It’s possible India’s equity mutual funds have delivered this kind of return over long periods. After 10 years, you’ve invested ₹6 lakhs, and your money has grown to a little over ₹11.6 lakhs.

Now you may think so what? Double in 10 years. Big deal?

But you wait.

You don’t stop. You continue the ₹5,000 SIP for 20 years. Your total investment is ₹12 lakhs. Your wealth? Almost ₹50 lakhs. That’s over four times the money you put in. And you didn’t lift a finger.

And then comes the real surprise.

You let it run for 30 years. That’s just ₹18 lakhs invested in total. The result? You’re looking at a portfolio of over ₹1.76 crores.

Push it to 35 years, and now you're sitting on more than ₹3 crores.

Double your SIP to ₹10,000 a month from the beginning, and this becomes ₹6 crore+ in 35 years.

Now tell me: which business gives you this kind of compounding without you having to run around, manage staff, stock goods, or take loans?

But most people never get here. You know why? Because they get bored. They want instant returns. They stop after 3 years because they don’t see results. They panic when markets fall and withdraw everything. They listen to friends and relatives who have no clue what they’re doing.

It’s like digging for gold but quitting just before hitting the jackpot.

I remember one of my earliest clients, Anjali. She was a school teacher earning ₹25,000 per month when she came to me. We started a SIP of ₹2,000. Over the years, as her salary increased, she kept increasing the SIP. She never skipped a month. Today, 17 years later, her portfolio is worth more than ₹40 lakhs. She never traded. Never speculated. She simply trusted the plan and stayed consistent. And now, she’s planning to retire at 50.

Compounding doesn’t care if you’re rich or poor. It cares about time and consistency. If you give it both, it rewards you in ways that feel unreal until it becomes your reality.

And it’s not about big amounts either. It’s about starting. ₹2,000. ₹3,000. ₹5,000. Whatever you can afford. And increasing it every year. You’ll be surprised how even small increases add up.

I’ve seen people buy expensive phones on EMI and skip their SIPs. I’ve seen people who won’t invest in mutual funds because market risky hai, but will lend money to friends who never return it.

Let’s be clear every decision you make with your money either takes you closer to wealth or further from it.

Now here's a thought: what if you already have SIPs but don’t know whether they’re performing well? What if your money is stuck in low-return funds or plans sold to you by banks just to meet their targets?

That’s where I come in.

If you want someone to review your current investments, check whether they’re actually helping you reach your goals, or if you want to start a proper plan that matches your life and dreams reach out to me. I’ll sit with you, understand your situation, and create a clear, no-jargon roadmap.

You don’t need a finance degree to build wealth. You just need someone who knows the way.

And if you’ve made it this far in the story, I’d love to know what you think. Drop a comment below tell me your experience, your doubts, or even if this story made you think differently.

And remember…

Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.

But also remember this: time is your biggest ally. Start now. Stay steady. And one day, your money will grow enough to tell stories of its own.

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Ready to begin your own ₹10 lakh journey?

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✅ SIP for Wealth Creation

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