As October rolls in, many eyes turn to gold. It is, after all, the classic safe haven. And make no mistake, gold prices are indeed shining. But here’s a reality check: investing in gold can preserve or grow wealth, but it cannot protect the people you care about most.
Term insurance can.
In this blog, we will go through the surge in gold prices this year, then pivot to why term insurance may be the more powerful tool for securing your family’s future. See the data, insights, and simple comparisons so you can decide what makes sense for you.
At Advents Wealth Solutions, we believe that true prosperity stems from the marriage of spiritual wisdom and practical financial discipline. With over 20 years of experience in financial planning, we understand that lasting wealth creation requires more than just investment strategies, it demands the cultivation of daily habits rooted in discipline, knowledge, and unwavering commitment.
1. Gold’s Bright October: What the Numbers Show
Gold’s Strong Run in 2025
- By mid-September, gold in India had risen about 7 % month-to-date, pushing the 10-gram price around ₹1,06,863. Year-to-date gain: ~44 %. (World Gold Council)
- Globally, gold is trading above USD 3,600–3,700 per ounce. (Trading Economics)
- In India, gold futures for October delivery touched new highs near ₹1,07,807 per 10 grams. (The Times of India)
- Earlier, gold futures had peaked around ₹1,10,666 per 10 grams. (Goodreturns)
So yes, gold is flashing all the right signals. Inflation worries, geopolitical uncertainty, weak rupee, all are making gold attractive again.
Why Is Gold Rallying?
- Hedge against uncertainty: When stock markets wobble, bond yields fall, or currencies weaken, investors often turn to gold.
- Central banks and institutional buying: Many central banks are still accumulating gold as a reserve asset.
- Expectations of further rate cuts: Markets hope central banks will ease monetary policy, which typically supports gold.
- Currency dynamics: A weaker rupee amplifies gains when global gold prices rise.
But before you rush to load up on gold, let’s talk about what gold can’t do. Let’s focus on what your family really needs.
2. What Gold Can and Can’t Do?
What Gold Does Well
- Acts as an inflation hedge (over long periods).
- Serves as a portfolio diversifier, especially in volatile times.
- Is liquid (especially modern gold instruments) and easy to carry or transfer.
Where Gold Falls Short, for Your Loved Ones
- It does not provide protection in case something happens to you.
- The value can be volatile in the short term.
- It doesn’t replace income or help with liabilities like loans, children’s education, or daily expenses.
- There are costs: making charges, storage, security, and sometimes taxes or import duties.
Gold is a tool, not a shield. What your family truly needs is something that protects their well-being if your life journey is cut short.
3. Term Insurance: The Shield Your Family Deserves
What Is Term Insurance?
Term insurance is a simple life cover: if you pass away during the policy period, your nominee gets a lump sum (sum assured). If you outlive the term, typically you don’t get anything (unless you pick a variant with return of premium). And now with the new GST reform, 18% tax on term cover has gone, making it even more accessible and affordable.
It doesn’t try to be an investment or savings vehicle. That clarity is its strength.
Why It Matters (Especially Now)
- Affordability: You get high coverage at relatively low cost.
- Peace of mind: If something happens to you, your family isn’t left scrambling.
- Tax advantage: Premiums qualify under Section 80C, and death benefit is usually tax-free.
- Flexibility with add-ons: You can add riders like critical illness cover, accidental death, etc.
- A survey by Axis Max Life showed that 74 % of Indians are aware of term plans, but only 34 % actually own one. (The Economic Times)
- Many people still mix “life + investment” products, making protection hidden under complex structures.
- In middle-income families, term insurance is often the most efficient way to safeguard dependents.
How Much Cover Should You Aim For?
A general rule of thumb is 10 times your annual income, but that depends on your liabilities, dependents, future goals, and lifestyle.
If you have debts, a mortgage, children’s education cost ahead, or want to maintain your family’s standard of living your sum assured should reflect all that.
4. Gold vs Term Insurance
| Feature | Gold | Term Insurance |
|---|---|---|
|
Primary Purpose |
Wealth preservation, hedge |
Protection for your dependents |
|
Income Replacement |
None |
Provides lump sum to replace lost income |
|
Cost / Charges |
Making, spread, storage, taxes |
Premium (usually low for term) |
|
Returns |
Volatile, market-driven |
No “returns” — protection only |
|
Liquidity |
High, depending on form |
Not designed for liquidity, but gives peace |
You wouldn’t compare an umbrella to a life jacket. Both offer protection, but in different contexts. Similarly, gold is a tool in your financial toolkit; term insurance is foundational protection.
5. Why This October It’s Wise to Look Beyond the Shine
October often sees increased interest in gold thanks to festivals, weddings, and seasonal demand. But price momentum doesn’t guarantee value, especially if your core need is protection.
Here’s what you should do now:
- Check if you and your family are adequately protected
If you don’t have term insurance, you’re leaving your loved ones exposed. - Don’t delay
Premiums are lower when you are younger and healthier. - Decide cover based on your life
Don’t overpay or under-insure. Map your liabilities and future expenses. - Mix intelligently
It’s okay to hold gold for wealth goals. But never let it substitute for core protection. - Revisit your plan over time
As income grows, family size changes, or debt is settled, review your cover.
6. Final Thoughts
This October, gold prices may light up front pages. And yes, they deserve attention. Gold is valuable, timeless, and useful in many portfolios.
But if your goal is to build a legacy, to ensure your family doesn’t fall apart financially in your absence then term insurance is your real hero.
Don’t wait for life’s uncertainties. Take care of what matters most first. Let gold be a growth asset and let term insurance be the foundation.
