Financial planning is essential to begin as early in life as you can. It involves creating sustainable wealth where you can enjoy your life as well as plan for your future. Along with it, one more concept that is garnering attention is insurance planning. It means analysing the insurance needs of a person. Insurance planning can involve opting for an insurance plan to cover their life, health, property, motor vehicles and more. Almost everything in today’s world can be insured if you’re ready to pay the price for it.
Life insurance is restricted to offering protection to your life while other insurances are categorised under general insurance. To save your hard-earned money, you can use an insurance plan as per requirement.
Let us look at the various benefits of your insurance planning –
Helps in Safeguarding your life
The adage, health is wealth, describes that your life is the most valuable asset. You might insure every aspect of your life from motor vehicles to business goods, but often neglect yourself. As you age, you start to shoulder the responsibilities of your family. At such times, a health insurance cover ensures you stay protected with other important things in your life. Your family needs not only your financial support but also an emotional one. That makes it important to safeguard your life using appropriate insurance planning.
Reduces Financial Stress
An unforeseen medical emergency can make a u-turn in your life. A critical illness might set you back, losing your livelihood while recovering from ailments. Although an insurance plan does not compensate for the emotional grief, it avoids leading you further in a debt trap. You can ensure your insurance plan adequately finances the costs of your treatment. Your life savings can be used for other purposes like funding your child’s education, marriage or for your retirement.
Adds Financial Security
The right insurance plans can help you indirectly grow your corpus. While it may not contribute to the growth in direct terms, it can help in protecting it. Whether you are a first-time buyer or at your insurance renewal stage, careful evaluation of your financial goals is crucial for selecting the right insurance plans.
Although money cannot buy health, it can assure you mental peace knowing your family is financially secure. Your savings, along with the insurance amount, can assist your family in sustaining their standard of living.
Third party motor insurance policy must be purchased to insure your vehicle as per the law, specifically, the Motor Vehicles Act of 1988 & Amendments Act of 2019. Failure to do so may result in an imposition of hefty fines upon yourself.
Legacy for your family
In case of an unfortunate event, your family can make an insurance claim. This way, you can support them even in your absence. Your legacy can remain protected when you plan your insurance from the start. The countless years you invest in building a fund for your future generations can remain intact when complemented by the right insurance plans.
Thus, considering insurance as a ‘save-your-savings’ cover more than an expense is necessary. The importance of the right insurance plans cannot be emphasised enough. Make sure you select the adequate insurance covers after analysing your requirements. Stay safe and stay insured!