Losing someone in the family is always painful. And if that person is the sole provider, the family’s prospects turn very bleak, as we read in the story of Neil and Joanna in the last edition. Had Neil’s father been insured, the family would have avoided any financial distress. But is life insurance alone sufficient? Should we not protect our assets and wealth while we are still alive? Let’s find out with Alvina’s story.

Money Mantra # 7

Be adequately protected to face any untoward financial loss, because prevention is better than cure.

 

‘Alvina? Angela hesitantly questioned the woman sitting somberly in the waiting area of the hospital.

The woman took a few moments to recognize her childhood friend.

‘Angela!’

As they hugged, Angela asked the inevitable question, ‘What happened?’

Alvina noticed the nametag on her friend’s white coat. ‘Dr. Angela Fernandes,’ it read.

‘It is Nigel,’ Alvina said with a long, sad sigh. ‘He was involved in an accident…’ Her voice trailed off. Angela clasped her friends’ hands in hers in a comforting manner.

‘It has been over a month he is in the ICU. I don’t…don’t really know what will happen,’ Alvina said between sobs.

‘Don’t worry, Alvina. I have recently been transferred to this hospital. Let me look into this,’ Angela patted lightly on her shoulder.

‘Let me finish my rounds in the pediatric section and meet you for lunch. It looks like my childhood bestie can do with some food,’ Angela tried to cheer Alvina, who managed a feeble smile.

The hospital cafeteria was full of tired relatives and attendants who milled about from one counter to another, swiping cards and carrying trays of coffee and snacks. Alvina, who ran a successful café in the beach belt, was now used to the tepid soup and insipid, doughy croissants.

‘Hello dear,’ Angela burst into the cafeteria and apologized for the delay.

Over the next half an hour, Alvina filled in the gaps for Angela. She told Angela how, soon after college, she married Nigel, who used to work on a cruise liner. For a few years after their wedding, Alvina joined Nigel on his sailing assignments to give him company.

About three years ago, Nigel and Alvina decided to take a break from sailing and anchored their ship in their hometown. The couple had earned good money, and they invested all of it in a beach-side restaurant. Leveraging their exposure to world-cuisine, Nigel and Alvina crafted a unique menu, which became an instant hit. They worked very hard to manage ever-increasing patronage.

During the off-season, the duo would fly to exotic locations, attend international wine and foods festivals and learnt new exquisite recipes to add to their menu. Nigel and Alvina earned a lot and led an ultra-lavish lifestyle. They were both very happy and carefree.

‘It all seemed like a fairy tale … until Nigel got involved in this horrible car crash,’ said Alvina ruefully.

Angela consoled her, ‘I have spoken to the doctors and told them that Nigel is family. They have assured me that they are doing their best. It will take some time, but Nigel is out of danger.’

Alvina gave out a long sigh of relief. She looked gratefully at Angela.

‘Thanks friend. I know my Nigel is in good hands.’

After a brief moment, Alvina suddenly remembered to ask, ‘Hey, where had you been all these years? I know you have become a doctor now, but tell me all about you that I have missed.’

Angela smiled, ‘I hadn’t been anywhere, dear. It was you who set up the sails and went for a long voyage, leaving your friends behind.’ Alvina gave a sheepish grin.

Angela told her that after school, she took some time to work with an NGO, working with children in slums and orphanages. It was then that she discovered her passion for providing medical assistance to poor children. As a pediatrician, she worked in several hospitals in Mumbai and also ran a free clinic in the Mumbai slums. Angela married a fellow doctor and they had a two-year-old son.

‘I have recently come back here as I wanted my son to be raised in cleaner environs. I work in this hospital and also do weekly rounds in the orphanages around here.’

The lunch hour was about to end, and Angela had to go for her rounds.

‘Alvina, Nigel will regain his health sooner than you think,’ Angela consoled her friend, ‘Although, I must tell you that Nigel might have to undergo a couple of more procedures, which cost a lot.’

Alvina’s face wilted. She looked visibly perturbed.

‘Hey, don’t worry, there is nothing that the insurance company wouldn’t cover,’ Angela said brightly.

Alvina stared at her shoes, unable to tell the truth.

Angela understood that her friend didn’t have Mediclaim insurance.

‘Alvina, dear, without a Mediclaim, you will end up paying a lot of money from your pocket!’

Alvina let out a sad sigh and said, ‘I know. We never thought that we would be facing any situation like this. And we always thought that we have a lot of money. But now I know how wrong we were.’ She knew that Nigel’s treatment would leave them broke.

Angela didn’t lose a second to fish out her cheque book from her handbag. She drew a cheque of Rs 3 lakhs in Alvina’s favour and handed it to her. ‘This is for now, if you require more, don’t hesitate to ask,’ Angela said lovingly.

Alvina was incredulous. ‘I … I don’t know … what to say, Angela. How can I take … so much money? I don’t want to eat up from your hard-earned savings,’ she protested.

Angela smiled and said, ‘What are friends for? This money would be best used in treating Nigel. You need it more than I do. And as a matter of fact, this isn’t from my savings.’

Angela explained to her friend that she had been investing in mutual funds through SIPs since college time and now she has a large, ever-growing, self-sustaining portfolio.

‘See, I don’t have to work for money or save for occasions. And I can help any child in trouble or a friend in difficulty, thanks to my portfolio,’ Angela beamed, ‘Now, I will rush. Will check on you tomorrow morning.’ And with that, Angela left in a jiffy.

It was all too much to take for Alvina, who stood rooted to the spot in the bustling hospital cafeteria, a hefty cheque in her hand.

‘I might have travelled the world and achieved professional success, but I need to learn a lot more,’ she thought, making a mental note to ask Angela more about investing and insurance the next day.

Stay tuned for the Eighth Money Mantra to be featured in the next edition.

How did you like the story? Write to us at navemarg@gmail.com to share your thoughts.

Celso Fernandes, Goa’s financial doctor, can be reached at +91-9422058741.