While income, expense, investments and liabilities form the four pillars of any financial plan, its success actually depends on the ability to manage these well. Here is when Insurance comes into picture:
Risk Planning comprises of Following Insurance:
Life Insurance is a protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured . It also helps you and your family meet unexpected financial liabilities due to lifetime events. So, before purchasing a life insurance policy, you should consider financial situation and the standard of living you want to maintain for your dependents or survivors.
Health Insurance :
A midst all the wealth and riches we have, we sometimes tend to forget that health is the most important asset to us, and once it is lost, no real wealth means much. Therefore, we should always be careful to take care of this precious and invaluable treasure. Some people are born healthy and some are not. But it is totally impossible to predict what may happen to our health at any time. God forbids, but we may fall prey to some sudden sickness.
The health insurance comes for our rescue in emergencies. It protects us and covers us financially. You need to pay a sum of money, namely premiums. The amount of premiums depends on the insurance policies of concerned insurance companies.
Although Health Insurance policy covers all types of critical illness but once Critical illness is diagnosed, it requires a huge sum to treat and in most of the case recurring claims arises.To cover the same, Critical illness insurance is required, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy.
Personal Accident Insurance/ Disability Insurance:
Personal Accident insurance or PA insurance is an annual policy which provides compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events.
It offers income protection to individuals who become disabled – Permanent or Partial for a long period of time, and as a result can no longer work during that time period.
Motor insurance is insurance for a motor vehicle such as a car, which provides protection against loss in the event of an accident, theft, etc
A form of property insurance designed to protect an individual’s home against damages to the house itself, or to possessions in the home. Home insurance also provides liability coverage against accidents in the home or on the property.