A retiree asked me: "Why should I invest in debt when my pension & rent easily cover my lifestyle?"

His case is rare - no loans, steady income, full medical cover, and children settled. His investments are truly surplus. For him, an all-equity portfolio may actually make sense.

But most investors aren't in that position. Rules like "always keep some in debt" exist to protect against uncertainty — income disruption, health costs, or panic during market falls.

Even for the wealthy, a small debt portion helps rebalance and buy more when markets drop.

Lesson: Rules work when their assumptions apply. If your life defies the usual risks, you can bend the rules - but only with self-awareness and discipline.

Markets test emotions more than logic.

Few days ago, someone shared a post in social media saying term insurance isn't right for most Indians.

He feels people need "combo" products - like ULIPs or Endowment plans - that mix insurance with savings.

Honestly, we don't agree.

Here's why,

When someone pays ₹25,000 a year for a traditional policy, they usually get a life cover of ₹5–10 lakh.

But the same amount can get you ₹1 crore+ cover through a term insurance plan.

That's the difference between just being insured and being truly protected.

And those "investment" parts of traditional policies?

Most barely give 6–7% returns - often less after all deductions.

Once you factor in inflation, it's not really helping your money grow.

So, these bundled products end up doing neither job well:

• Not enough protection
• Not great returns

When something happens to the earning member, the family doesn't need a small maturity amount.

They need real financial security.

That's why we always say:

• Insurance should protect
• Investments should grow

Mixing the two usually not beneficial to the customer.

A simpler, smarter way:

1. Take a proper term insurance - to secure your family.
2. Then invest separately - in transparent, flexible options.

It's not a Western concept. It's just fairness.

Because when it comes to family protection - insurance should just insure.