Buy Insurance Before You Regret

Mitesh, the only breadwinner in his family and a hardworking man who carries the responsibility of his children’s education, old parents and housewife, left for his routine work one fine day, however, destiny had another plan that day. While returning from the office, Mitesh meets with a fatal accident leaving him with brutal injuries. He was rushed to the hospital, but he could not be saved. His family shattered, the future of his children seemed devastated, who will look after them?

Fortunately, it was just a nightmare, Mitesh wakes up, sweaty and afraid as if he’s still in his dream. That day, Mitesh understood that his little savings, SIPs and a home on loan will not be enough to protect his family if something bad happens to him. He understood that his true responsibility is to protect his dear family even in his absence. ‘Before the storm hits, build your shelter.’

Getting A Term-life Insurance

Folks, the tragedies of life knock the door uninvited, they drag you to the harsh realities of life. And if it's a financial pit hole, your insurance will determine whether you would get the ladder to climb or not.

Getting term-life insurance is important to protect your loved and dear ones in case something happens which you had not wished for. We think other people die, but it’s you and me who dies, death or disability can occur to anyone, and you could also be one of them. Let's not run away from this reality and do not be ignorant.

A term-life insurance protects your family in case of a death. Ideally, one should take the term-life plan at an early age to grab the low premiums. You can take a hefty cover of as much as Rs 1 crore to protect the future of your family.

However, there are a few points to be noted while buying a term-life plan:

• The premium you pay will not be credited to you on maturity, there are plans which do offer a lump sum amount on maturity but do not opt for them as they will further inflate your premiums. So, do not link your insurance with investments.
• A term-life plan can be delayed if you are young and do not have dependents on you. However, it should be a priority if you have family depending on you for financial needs.
• The premiums of the term-life plans are cheaper and affordable, so always try to get yourself insured for 20 times of annual pay. However, your income will determine your coverage.

Accidental and Disability Insurance- Although a disability caused by the accidents is generally covered in the term-life plan with a rider, that is somewhat an optional feature. Suppose you are working in a hazardous industry or you are prone to injuries, term-life insurance can neglect your claim. However, accidental insurance is especially designed to cover such injuries causing disability.

These policies are cheap to buy and operate on annual renewal mode. You are insured till you pay premiums, but when some disability (Partial or full) happens, they do give a cushion of providing lumpsum payout depending on the nature of disability and also provide Weekly allowance to provide cash flow during the course of treatment compensating for loss of pay from work.

Buying A Health Insurance

Now, meet Ravi, who always believed in ‘you only live once’ (YOLO), enjoying life, buying all sorts of things, traveling abroad, chasing dreams but not every story has a good ending. And this time it’s not a nightmare, it’s a reality. Ravi’s father suffered a massive heart attack and needed immediate surgery. Ravi rushed to the hospital, his father was admitted, and Ravi was sent to the reception. ‘You need to deposit Rs 5 lakh before we proceed,’ said the receptionist with a grim face.

Shocked and trembled, Ravi knew his savings would not help him today. Time was slipping away while he was busy arranging money. Some funds were arranged through loans and friends but were not enough to save his father. Losing a family member because you could not arrange the money is experiencing a nightmare with open eyes. Friends and relatives could not help him while health insurance could have. Ravi made a terrible mistake of neglecting the need to build the financial net for himself and family. Having a health insurance policy is so important that it can save you from unexpected health expenses. However, the need is clearly underestimated.

The air you breathe can cause you death, yes you read it right. In 2019, 1.67 million people died in India due to air pollution, accounting for 17.8% of total deaths. Yet the insurance penetration remains much lower than the global average.

We hope this blog could help you realise the need for insuring yourself before it’s too late, also the minute details you need to keep in mind while buying the health insurance. Understanding health Insurance is equally important before you buy it. Technical jargons like Waiting Period, Co-pay, Room Rent Capping, No Claim or Restoration Bonus, Cashless and Reimbursements etc. should be looked at carefully.

Unlike term-life insurance, purchasing health insurance can be complicated, but we are here to simplify so you can make informed decisions. Book a free appointment today to help financial experts to properly plan your financial pyramid. Out of the four layers of the Financial Pyramid, insurances and emergency funds lay the foundation. To understand it better and develop it, reach out to MINTIT.

Having health insurance is so crucial that it is considered as a foundation of financial planning. Everything which is unpredictable and can cause a strain on your financial well-being must be prioritised. Same goes with the ‘emergency fund’ which you can refer to in another blog by MINTIT.

MINTIT, India’s only dedicated Mutual Fund Platform which caters to your personalised goals and accompanies you to achieve your financial milestones is eager to help you build your wealth. Depending on your profile it precisely suggests tailored investing plans to achieve your goals.

“You can’t predict the rain, but you can carry an umbrella”