Importance of Insurance in our Lives

Do we really Value the importance of Insurance, or just keep on piling number of Policies just for the sake of Tax Saving and believing that we have done so called Financial Planning.

The meaning of Insurance as provided in the Dictionary is  ‘A contract to provide compensation for loss, damage, or death.’ Or we can say a safeguard against loss or failure.

We should understand that Insurance is not an Investment, but its purely an Expenditure.

So lets see what are the different kind of Insurance available and useful for us.

1.  Life Insurance

2.  Health Insurance

i.Medical Insurance

ii.Daily Cash

3.  Personal Accident

You need Life Insurance to cover the Risk of Death of the earning member of the Family.

Health Insurance is required as a cushion against Hospitalisation Expenses.

Personal Accident Insurance covers the policy holder against death or disability due to an accident.

If you don’t have the right amount Insurance cover, then it will create a big dent in your Family’s Financial situation even if you have a handsome Investment Portfolio.

Guidelines for Individuals seeking Financial Planning

Role of a Financial Planner

What is Financial Planning ?

1) To make sure that at Retirement when your Income Stops, You are able to maintain the same Lifestyle without any compromises.

2) To make sure that tomorrow if you are not there with your Family, your Family would be having no Problem to live a Comfortable Life.

3) To make sure that All the Financial Goals like :
     a) Own your House
     b) Education for your Children
     c) Marriage of your Children
     d) Own your Car
     e) Vacation in a Foreign Country
 are achieved without Tensions and Worries.