Term-InsuranceThis year it was my husband’s 40th birthday. We have 2 beautiful kids- a 12 year old son and a 10 year old daughter, studying in a premium school. We currently live in our own house and fortunately have no liabilities. Our dream is to ensure that our kids are well schooled and we have enough to support their education goals when the need arises. I am a working woman and I contribute about 15% to the total household income.

what ifWhat if something goes wrong today!

Can I handle it by myself? Will I be able to support the education goals for our children by myself? Will I be able to maintain my present lifestyle going forward? Is there a way I can fill this gap and not have sleepless nights worrying about it?

Some thoughts I never want to ponder on! But do I have answers for them, if god forbid, something does go wrong? I realised that though my life was on track it needed a safety net – some precautions against the uncertainties of life. My husband needed to be insured and so did me….for us!

As a financial planner I did find out the answers for myself. I like to be prepared for the worst. I would like to share my thoughts with you.

Death of a loved one can cause 2 types of distress- emotional and financial. While emotional distress is difficult to be prepared for; a financial distress definitely can be handled by taking adequate insurance. Insurance is a product that can help protect your family and dependents in case of your early death. It is NOT a tax saving tool. Insurance Premium is a cost you have to pay to take care of the risk of death. The premium that you pay may help save taxes, but please remember, that’s not its main purpose.

lifeDeath is not the only contingency you need to address. Disability is another, which can hit us right on the face. How often do we hear of someone who has met with an accident resulting in total or partial disability? While you may not be able to avoid accidents other than probably by driving carefully, it is a risk!! Personal Accident Cover provides insurance cover for financial losses resulting from an accidental death or disability that can lead to financial hardships arising out of loss of mobility, livelihood and job. Even a spouse can be covered in the same policy. After all, don’t I as a spouse also face the same risk!

Another contingency I would like to discuss is of ill health. If my husband were to fall ill grievously requiring hospitalisation, our savings and investment program may be derailed due to the heavy medical bills! I would prefer to be prepared by taking adequate medical insurance for him.

Take insurance when you can and not when you need it! Review your insurance cover today.

The second part of this article will cover more insights about the quantum, types of insurance and insurance for self.

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