Are You Overspending on Life Insurance?

We often debate whether insurance is an expense or an investment. But here's another question — what if you're overspending on something that's meant to protect, not profit?

Seen This Happen? 👀

You sit across someone reviewing their life insurance portfolio.
They proudly say, “I’ve taken a ₹2 crore policy.”

Sounds impressive. Maybe even responsible.

But then you ask a few questions:
– Any liabilities? “No, I’m debt-free.”
– Dependents? “Just my spouse. No kids yet.”
– Monthly expenses? “₹35,000 all in.”
– Income? “Around ₹6.5 lakhs annually.”

And suddenly that ₹2 crore starts to feel… unnecessary.

Not wrong. Not dangerous. Just… maybe a bit too much.

Let’s Talk Balance ☕

Life insurance isn't like groceries — you don’t top it up every week.
But it isn’t like buying land either — more doesn’t always mean better.

When your cover far exceeds your actual financial responsibility, you're essentially:

• Paying premiums you may not need to
• Locking liquidity into long-term promises
• And building a plan that solves a problem you don’t even have yet

Think about it this way:
If someone needs ₹50 lakhs worth of cover but ends up buying ₹2 crore, what are they insuring for? A second life?

What I Often Notice 📋

This isn’t rare.

In fact, over-insurance happens more often than under-insurance — at least among cautious savers and tax-season decision-makers.

Why?

• "Higher cover means I’m being smart."
• "The agent said it’s future-proofing."
• "It just felt like a safe number."
• "I didn’t want to underdo it."

Totally human logic.
But here’s the flip side — when premiums start eating up your savings capacity, you’ve just turned protection into pressure.

Something Most People Don’t Realise 🧠

When insurance is positioned as “peace of mind,” people assume more = safer.

But insurance isn’t a luxury item. It’s a risk cover.

Buying more than you need doesn’t make you more secure — it makes you more committed financially for a goal you’ve already achieved.

It’s like putting on three raincoats when there’s a light drizzle. Sure, you won’t get wet. But you’ll also sweat buckets and ruin your day.

“The right insurance is not the biggest one you can afford. It’s the one that fits like a seatbelt — not a straitjacket.”

A Few Real Questions I Often Hear ❓

Q: But what if my future expenses go up? Shouldn’t I plan ahead?
A: Of course — but plan wisely. You can upgrade or top up cover when needed. Don’t buy for a future that hasn’t even begun.

Q: Is more cover ever harmful?
A: Not harmful — but it can be wasteful. Premiums come from your income. Overspending here may reduce your investment potential elsewhere.

Q: What if I already bought a huge policy?
A: Then review it. You may not need to cancel it — but maybe you pause before adding more. Or switch to more efficient coverage next time.

Just One Thought Before You Go 🌱

If insurance is an expense — then buying too much of it is just that: over-expenditure.

And we wouldn’t overstock groceries, or buy two air-conditioners for the same room… so why treat insurance any differently?

You don’t need to go underinsured.
You also don’t need to overcommit.

You just need to stay in tune with your real need. That’s what wisdom looks like — not just financial responsibility, but emotional clarity.

If any of this felt familiar — maybe it’s worth revisiting that one bulky policy with someone who won’t judge, pitch, or panic you.

Offline works best.