Buying an insurance policy has never been our top priority and when it comes to having one, most of us generally tend to rely on advisors, sales agent and distributors. And, one thing happens, when we buy an insurance policy without knowing the product and our actual needs, we end up having a policy that seldom covers all our risk, and becomes a financial burden.
Insurance is the most important and fundamental element of financial planning, and without it, you and your family are more exposed to the risk of financial loss.
Over the decade, insurance has emerged as a crucial tool in financial planning compared to just a tax saving option in earlier days. And, now insurance schemes have become a lot smarter and inclusive, fulfilling customer expectations more precisely. Insurance doesn’t only cover the risk of financial loss but gives you peace of mind.
In this blog, I will only focus on the benefits of having health insurance and life insurance, how these two helps in proper financial management.
Health is wealth, and someone has said it rightly. Without being at the top of our health, we cannot excel in our professional field. Likewise, if our loved ones, get a critical medical complication, we go beyond our financial means to give the proper medical care. This, in turn, makes our finances weak and derails the plans.
Quality healthcare is a costly affair and not having adequate health insurance coverage, it can drain you financially and mentally. The main objective of health insurance is to offset the costs arising out of such medical complications. And, if there are any family history of medical complications, then you should act accordingly and take proper cover to limit the financial damages.
With time, insurers have become more responsive to the emerging situation and come out with innovative plans to suit customer needs. Plans like Cancer insurance and Critical Illness insurance are the latest offering from insurance companies.
Cancer Insurance and Critical Illness (CI) insurance plans are very different from regular health insurance plan and provide financial assistance to the insured only if he/she has been diagnosed with cancer or the specified disease listed in the CI list.
As cancer is a very deadly disease which requires different medicinal care, insurance companies have specially designed the product around it. This plan is advised to those, who have a higher risk of contracting the disease based on family medical history and lifestyle. Same also goes with Critical Insurance plans.
Life insurance is another very critical investment in securing your family’s needs and goals. The risk and implications of not having life insurance are far greater than not having a health insurance policy.
If you are the sole-earning member of your family, then you should not ignore the importance of having life insurance. As because, life is uncertain and in case of death without the proper protection, it could wreak havoc on your family and shatter the goals and dreams. The payout from life insurance will help your family to keep running and pursue the goals, thus making life little bearable.
There are many different types of life insurance plans in the market like term plan, ULIPs, Endowment Plan, Money Back Plan, Whole Life Insurance Plan having different risk and coverage. Each plan has some unique features is divided as per risk coverage and wealth creation.
In simple words, life insurance acts as a strong backbone for building your finances and meet all your unplanned contingencies.
Insurance is a bit complicated subject to understand, but if you invest time to understand and know the product, it helps you in the long run and acts as a saviour. It doesn’t only help in securing finances but also protects you and your loved ones.
Life is a long journey and we all strive hard to make it better and secure, but not protecting it is akin to gambling with the life of our loved ones and can make all your efforts worthless. Thus, including insurance to your financial planning makes it look complete and more secure.
Read Steps to “Having a Sound Investment Strategy for Optimal Returns”.