Insurance is another name for “Legacy Planning”
With the year 2021 coming to a close in a few months, it is natural to find your mind drawn towards your finances as well as your overall fiscal health. After all, the end of the year is a good time to go over one’s investments and other planning and critically review how far they have come in the past year.
Moreover, some readers may even be thinking about the next generation (their children) when planning investments for the New Year 2022. These are investors who are already thinking about their legacy; that is, what they are leaving behind for their close ones.
If you are among these forward-thinking investors, without a doubt you have a desire to leave behind a healthy corpus for your family. This is where insurance plays a major role. By its very definition, insurance exists to nullify the financial losses an individual/family faces in case of adverse circumstances.
Let’s see why it is important to have insurance in your portfolio:
- If you are involved in an accident and admitted to a hospital, you not only have to shell out lakhs for treatment, but you are not earning for a period of 2 – 3 months. This can derail your ongoing investments, divert money that you have earmarked for your child’s education, and so on. A health plan or a personal accident cover will allow you to pay off the hospital bills and continue your investments too!
- Similarly, if you fall victim to a critical illness like cancer or cardiac arrest, your critical illness plan will step in and nullify the entire negative financial effect of recovering from such serious illnesses.
- A term plan, which is crucial to have in your portfolio, protects your loved ones if the worst were to happen to you. In the case of your demise, the term plan pay-outs will ensure your family’s lifestyle does not get affected, your children continue their education, and there is more than enough money for daily expenses.
In conclusion, it is important to not just think in terms of making wealth, but also in terms of stopping hard-earned money from just fizzling away due to adverse circumstances. This is the sign of a mature investor.
In the year 2022 and in future, let insurance provide support to your portfolio!
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