A ROAD MAP FOR INSURANCE

A financial planner once said this about life insurance buying habits of Indians:

 " They don't buy life insurance, it's sold to them."

    Unfortunate, but true.  Individual awareness and understanding of life insurance product is extremely low, and many among the insured don't even know whether the life insurance policy they own meets their insurance needs and their personal finance needs.

  

     Disasters don't usually announce their arrival. They strike unnoticed, often with dire consequences that scar your world and play havoc with your personal finances.  You can take the greatest care in the world with all things precious, but you will never eliminate the possibility of harm befalling them.  What you can do is mitigate the effect of such eventualities on your family's finances, especially if they are finely balanced, by buying Insurance.

    Insurance, in its purest form, is a risk management tool, a security blanket. It provides you financial protection against unexpected events. If you are adequately insured, your life insurance should enable your dependants to maintain their current life style and pursue their life goals-till such time as they are in a position to set up an alternative income stream by themselves. That's the basic purpose of life insurance.

 When you buy insurance, you effectively transfer a portion of your risk to your insurer.  This protection comes at a price, but it's a fraction of what you might otherwise find yourself burdened with.Whatever stage of life you are at, chances are, you do need insurance.

A ROAD MAP FOR INSURANCE

AGE	LIFE INSURANCE	NON LIFE INSURANCE
Young 20s adult	Buy only if you have dependants	Buy accident and Heath insurance, requisite asset cover
Yong 30s family	Subtract existing assets from future expenses, and cover the difference	Extend health insurance to family; continue accident and asset covers
Mature 40s family	Maintain cover to balance the shortfall in existing assets	Same as above
Empty 50s Nester's	Maintain cover till you are earning	Top up health cover for self and spouse, continue asset cover
Retired 60 & above	No life cover needed, unless you have dependants	Continue health insurance for self and spouse; continue asset cover