Don’t Neglect Insurance; Insurance First and Investments Next

There are so many people in India who tend to do “Investments” to create “Wealth”. But when they are asked about their risk-coverage(Insurance)they are sound-less!

It’s fact that millions of Indians neglect Insurance thinking that it wouldn’t be needed for them! They prefer Investments rather than insurance; But they don’t ever think that their investments will be eroded if they don’t take insurance.

Covid-19 taught us the need of “Health” and “Life Insurance”. If you are not covered under insurance, all your wealth erodes in minutes or hours. So please beware!

Need of Health Insurance-In India medical costs are rising at about 10-12% per annum . If you are not covered under health insurance, all your hard earned money will be at high risk(eroded).It’s fact that there are many instances that people loose their tangible and intangible assets to repay hospital dues.

So every individual should take health cover to cope with any unforeseen events due to medical emergencies. In developed countries like US(United States of America)it is mandatory to have “Health Insurance”, but in India it is not; But it is in your hands to take health cover as per your capability.

Health insurance should be taken at young age; as at young age you will be healthy;as a result “Premiums” would be cheaper. Besides this, if you take health cover at young age, you will be covered under all diseases in the latter period subject to the ‘Waiting Period” of the insurance provider.

Need of Life Insurance– It should be taken by the bread-winner of the family to protect his family from unforeseen events. If the breadwinner demises, the sum assured would be paid to the family members. Many neglect life insurance as it wouldn’t be necessary for them; but every earning person should take life cover to protect their loved ones

The life cover would be 10-12 times of his annual expenditure. It would be better if it is more!

So, To protect from “Medical Emergencies” one should opt for “Health Cover”and “To protect their loved ones” one should take “Life Insurance”.

Both of them are non-negotiable and

  • It is mandatory to take life cover, if you have dependents
  • To protect from medical emergencies, one should opt for “Medical Insurance”. It is beneficial to take health cover at younger age, as all the diseases would be covered as years pass by

So Don’t neglect Insurance! Prefer Insurance First to Investments!

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