Insurance requirement in personal financial planningThis is the part 6 of the series “Masterize in Financial Planning through Football”Insurance has the major role in financial planning. This can determine the outflow of your major chunk of money and make your financial plan useless. In financial planning, understanding and requirements of insurance has very important role. Here it is explaining. Read further ….
We are coming to our football team. I have formerly inform you that the selection of members is not limited to the first 11 key players but, there will be another 3 or 4 players as extras. This is happening to assure the 11 member team will be always available to play in case of any accident happening to any of the member in the first 11 in the field while playing. Or sick. Extra player will immediately join with team to accomplish the requirements if 11 playing members in the field.Similarly, insurance has major role into your financial planning process. A person should take care of himself, his family and there future incase of his absense, his assets to protect from any possible consequences. Insurance will better deals with such situation.
Below is the points how one can loose his money if doesn’t have any insurance.
1. If one doesn’t have enough life insurance himself, his family will be under trouble if something happening to this individual.2. If he has a loan and no insurance against loan, if something happening to his life, his family will be in trouble with the huge burden of re-paying the home loan amount.3. If your family member is sick and don’t have medical insurance, you will lose your money immediately.4. If you are not insured your home, vehicle or valuable, you will be in trouble with any kind of calamities that spoiling your house, any accidents that spoil your vehicles or from consequences like burglary, through you can lose your valuable.
Here is the possible solutions for your insurance needs:
1. Always protect yourself with a huge term policy with cheaper yearly premium. This will safe your family if something bad happening to your life. A thumb rule for the required life coverage in such policy is is 7 to 8 times of your annual salary.2. Protect your loans with cheap term policies. This will also save your family from huge loan burden. If such there, insurer will pay the outstanding amount to the creditor.3. Protect yourself and family with good medi-claim or family floater medi-claim policy. This will give you access to free treatment as well as cash back for any in-patient treatment required to you or your family members.4. Protect your vehicles with third party policy.5. Protect your home and valuable assets with available but cheaper policy.You are now in safe side from losing your money for medical, calamity, accident. Your family also will be in safe side from any consequences that is happening to you, the only bread winner.
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