Life Insurance Myths :

There are a lot of misconceptions associated with Insurance. Insurance is mostly viewed as a tax saving tool and hence enough cover is not taken to cover you and your family under necessary circumstances. Always take an informed decision before considering Insurance needs for your family.

• Insurance is for saving tax
  Saving tax is just an added advantage of insurance policy. The main objective of insurance is to provide protection to you and your family and to build an assured corpus for your future needs.
• Insurance will benefit only after my death
  Insurance policies provide protection to you and your family. One of the main objectives of taking insurance is to provide financial cushion to your family in case you are not around but it's not the only objective. Insurance helps you to build a corpus for yourself; provides you with comfortable retired life and even takes care of your lengthy medical bills.
• My group insurance is adequate
  Your group insurance might be adequate but what if you change the job? Once you change the job your group insurance will cancel off and you will not get any insurance benefit. So it is always advisable to take insurance other than the insurance offered by your employer.
• Only the Breadwinner of the family needs insurance
  Every family member needs insurance. Your work profile changes the insurance needs but certainly does not eliminate them.
• I'm single and don't have any dependents, therefore I don't need any coverage
  You might not need a life insurance policy where your nominee is taken care of but you certainly need a policy to take care of your health and retirement worries..
• Life insurance is far more important than health coverage
  As the health costs are increasing by the day, taking a health insurance plan has become as important as a life coverage plan. Health plans, disability plans and critical illness plans provide you with financial cushion and compensate for the financial loss you suffer in case you are not able to work because of illness.

Financial Tips :

Negative:

• Traditional insurance policies suffer from twin problems of poor returns and low insurance coverage. Do not buy only to save tax or to oblige a persistent salesman.
• Withdrawing from retirement savings robs the nest egg of the power of compounding. Top up group health cover or buy separate cover so that you do not dip into your savings in an emergency.
• Stopping SIPS when the market is down defeats the very idea of systematic investing and rupee cost averaging. Do not stop buying when prices have crashed.
• Fraudsters lure victims with promises of easy money. Ignore emails from deposed dictators and dying widows who want to share their wealth with you.
• Pay off entire outstanding balance on credit card by due date. Rolling over balance attracts steep interest charges that keep accumulating.

Positive:

• Putting away small sums of money from an early age helps you accumulate a big corpus for your goals with a much smaller outlay than if you start investing later.
• An emergency fund helps you tide over a temporary money crunch when faced with a job loss or illness. Ideal approach is to invest in a liquid fund.
• Investing in yourself by upgrading your skill-set is your bet to fast track your career and enhance your income profile quickly.
• Stepping up SIP contribution in line with jump in income will help you reach goal on time. Direct any windfall income towards prepaying your home loan to reduce costs.
• Monitor your investment portfolio regularly and rebalance the asset mix whenever required. This helps weed out non-performers on time and maintain risk profile.

Financial Planning for youngsters :

Generally youngsters have to fulfill following dreams:

1. 1. Owned House.
2. 2. Car
3. 3. Child Education in best quality institution.
4. 4. Children Marriage.
5. 5. And Many Other ……

• You have to fulfill the dreams within your income, for that you may make following planning:

• Protection to the family by taking Large Life Insurance cover with lowest premium.
• Protect your health expenses with Mediclaim.
• Liquid money for emergency expenses.
• Savings, Investments
• Balance savings can be used to enjoy the life.

• Premiums for Life Insurance & Mediclaim to be treated as Expenses :

• Life Insurance is not for investment purpose rather it is for protection to your family.
• In case of mishap of the breadwinner of the family, life insurance (Term Plan) will take care of his family, children education, repayment of housing loan, etc.
• Mediclaim Policy will help you to secure savings like Fixed Deposits, Gold Ornaments, Investments, etc. in case of big/critical medical expenses.
• Small Amount of Premium will cover your expenses for the hospitalization.

• Periodically review your Life Cover, Mediclaim, Savings & Investments as your family grows & increase of other responsibilities.

5 Life Covers you Must Have :

Overseas Travel

• Emergency medical expenses including medical evacuation and transportation....
• Dental emergency expenses following an accident.
• Cover for Loss of checked in baggage, Delay of checked in baggage,...
• Personal Accident Cover
• Cover for Legal Liability for bodily injury or property...

Cardiac care

Diabetes safe