Welcome to valuepickr. Liked your first post very much.

Well, I think one might need to rethink this at some point of time or other (I am thinking loud here and also myself learning as I think and type. Also, I am speaking in general below so pls forgive or ignore the extreme events mentioned as we have to consider those when we think of insurance).

Life insurance is ideally not to cover immediate expenses of dependent family once they are gone but rather to ensure that the lifestyle of the dependents are not negatively impacted over the long term once the gone member’s income is taken away from the picture. Considering above, I think only a person/family who has enough other assets to ensure that the lifestyle, including inflation over long term, is not impacted may not need an insurance. Wife working & non-dependent parents are great to have and would ensure that financial survival is not impacted at all but would mean extra burden on the surviving members.

Another aspect to consider is, what if both earning members are gone is any unforeseen event. Then the non-earning or minor surviving members would definitely face huge financial stress.

Coming to health insurance, that again in worst case scenario, the earning members income will be in huge stress under unforeseen events. However, I feel taking a small health insurance policy is not of much use. The insured sum should be as big and comprehensive that if someone would have to shell that out of pocket, it would mean a massive future lifestyle impacting change. Problem with health insurance policies is that such big sum policies are extremely expensive upfront costs. In case of Life, the term insurance of big sum insured, I think is still at a reasonable/manageable cost. (I may be wrong here).

So, I think majority of people would need insurance. Its only that either they are fortunate enough to not have adverse events or they do not know it still that they need insurance. Problem is the upfront costs.

Can you pls mention more details/benefits about NPS tier 2 that you prefer it as part of your debt/hybrid portfolio?

Do keep writing such holistic/strategic posts like your first one. Good to see such structure, thoughts and vision.