I had some close friends at home the other day and we found ourselves discussing about a common acquaintance who had suffered a traumatic brain injury in an accident. He was in his forties and enjoying a thriving career with an annual salary of @ 1.5 crore, he had recently purchased a new home worth @ 6cr, his two young kids were enrolled in international schools. His wife was a home maker. The sad part was like most people who all believe in that statement “mujhey kuch nahi hogha” (nothing bad will happen to me) he had failed to adequately insure himself. After the accident, he spent more than six months struggling to recover, and his medical prognosis was bleak. The financial burden of his high-end car payments, home emi payments, medical bills, and international school fees for his children had taken a significant toll on his family. His story got all of us talking as to how we all had taken steps to protect our families by opting for insurance.
As we were discussing this, I realized that we often get insurance with our own biases in place, and we limit ourselves to the coverage we think we need. That's why I decided to put together a list of must-have insurance covers, or KAWACH, that every person should have to protect themselves, their families, and their assets.
Term Cover: Think of the product as that friend who will provide for your family when you are not around. Term insurance is a type of life insurance that provides financial protection for a specified period of time. It's a cost-effective way to make sure that your family is taken care of, even if something unexpected were to happen to you.
When deciding on your coverage amount, there are a few things to keep in mind. You'll want to consider your income, expenses, outstanding debts, and any future financial goals you may have. As a general guideline, it's recommended that your coverage amount be at least 10-12 times your annual income. But everyone's situation is unique, so you'll want to take the time to evaluate your own needs and choose a coverage amount that's right for you and your family.
Remember to review your coverage amount periodically and make adjustments as needed. This will help ensure that your loved ones are always protected, no matter what the future may hold.
Health Insurance: health insurance is something that can offer peace of mind in case of serious illness or accident. Without insurance, the cost of medical treatment can quickly add up, leaving you in a financially vulnerable position.
Let's take the example of a common medical procedure like angioplasty. The cost of this procedure can easily run into lakhs of rupees, and critical illnesses can cost up to 50 lakhs or more. And with healthcare costs on the rise, it's important to plan ahead and be prepared for the future. As a general rule, you can expect the cost of medical treatment to double every 10 years.
While some employers offer health insurance as a benefit, it may not be enough to cover all of your medical expenses. And once you retire, you may no longer have access to this coverage. That's why it's crucial to have your own health insurance policy that provides comprehensive coverage.
To make sure you're getting the best possible coverage, look for policies that offer no limits, single room coverage, and zero co-pay at any age. These features can help ensure that you're not left with a hefty bill in case of an emergency.
In addition to providing financial protection, many health insurance policies also offer preventive healthcare benefits. This can include regular health check-ups and tests, which can help you catch potential health issues early on. By taking care of your health proactively, you can avoid more serious health problems down the line and protect both your well-being and your finances.
Accidental and disability insurance: This can be a lifesaver in case of a serious accident. While health insurance can cover hospitalization bills, what happens when the accident leaves you disabled and unable to work? This is where accidental and disability policies come in.
These policies offer benefits such as death payments, partial disability coverage, and full disability coverage. In some cases, they may even offer child education benefits in case of death or disability. The good news is that accidental and disability policies are often quite cost-effective. For example, a policy that provides 50 lakhs in death benefit, 25 lakhs in partial disability coverage, and 7 lakhs in permanent disability coverage can cost as little as* 4200 rupees.
Home Insurance: After your family, Your home is one of your most prized assets, and recent natural disasters like the recent earthquake in Turkey are a reminder that things can change in an instant. Home insurance offers coverage for both the structure and belongings of your home. It's important to take cover that includes damages due to natural disasters such as earthquakes and floods. This kind of protection is especially important when you consider that these are events that cannot be predicted.
The compensation you receive from a home insurance policy can be used for repairs and to replace the items in your home. And the best part? Home insurance is affordable! A typical policy covering losses up to Rs. 40 lakhs can cost between Rs. 2000 to Rs. 5000, depending on the items covered. This small investment will protect your house against losses give yourself peace of mind knowing that your home and belongings are protected
We keep hearing about train derailments, industrial, road accidents natural disasters. Lets hope we never have to go through this trauma, but if the unexpected happens having the right insurance coverage is essential to protect yourself and your loved ones from unexpected events that can have a major impact on your finances and well-being. Term insurance provides financial security to your dependents in case of your untimely demise, while health insurance safeguards you from the high costs of medical treatment. Accidental and disability insurance offers financial protection in case of an accident that leads to disability or death. And finally, home insurance protects one of your most valuable asset, your home, from losses due to natural disasters or theft. Each of these insurance policies can offer peace of mind and financial protection. Remember, insurance is not an expense, but an investment that can safeguard your family's future.
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