The Most Authentic Guide on Personal Finance and Investments

Words of Wisdom : "If past history was all that is needed to play the game of money, the richest people would be librarians." ~ Warren Buffett

Are you adequately prepared for the ‘unforeseen’?

Risks are a part & parcel of anyone’s lives. Most people live under the false impression ‘It won’t happen to me’. Therefore, they don’t take adequate measures to prepare against such sad incidents. 

These can play havoc with ones’ finances.

A simple planning can go a long way in protecting you and your family from hardships in many unfortunate situations.

The emotional and mental trauma, of course, is something which can never be quantified or protected or relieved. But, one can at least take protection against the financial hardships, which usually accompany such situations.

The risk of medical problem
While medical advances have been able to save lives from many diseases and increased average life expectancy, the changing lifestyle has resulted in many new medical problems. Therefore, a Mediclaim Policy is a must for everyone. Today many such policies are available, which are very cheap when compared to the medical costs.

Another associated risk is of disability, either temporary or permanent, due to accidents, which also have become very common give the condition of our roads and the rash driving. This risk can be covered thru’ an Accident Insurance policy. This too is quite cheap and won’t hurt your finances much.

There is also, of course, the tax benefit available for the premiums you pay.

The risk of untimely death
Terrorism, natural calamities, accidents etc. resulting in the untimely death of the breadwinners is a traumatic experience for the family of the dependents. You can help your family by taking adequate life insurance.

In this regard, go for TERM policy only. This will be the cheapest form of policy for the amount you want to cover.

The risk of earnings loss
Another common risk today is of losing one’s job and hence the earnings. This, together, with the increase in life expectancy, means increase in the non-working years. Hence, financial security is becoming increasingly important.

There are no insurance policies against such a risk. We have to build our own protection plan which suits our circumstances - through proper financial planning.

The risk to physical assets
Fire, terrorism, theft, earthquakes etc. expose your physical assets such as house, jewellery, electronic goods, furniture etc. to risk.

Such risks to your physical assets can easily be protected today by way of Home Insurance Policies. 

The risk of Home Loan
In the last few years we have seen an explosion in people buying homes, which are mostly financed by way of home loans. The amount runs into lakhs of rupees and the repayment term around 15-20 years. Both these high amounts and long repayment periods pose a risk. Should anything go wrong and you can’t repay your loan, you could risk losing your house.

Today you can opt for a suitable Home Loan Insurance to protect yourself.

It is true that all these protections will involve some costs. But these costs would not add-up to more than what you annually spend on the weekend dinners/movies or your vacations. Moreover, they are essential given the increased uncertainties in life.

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