Insurance Planning is concerned with
ensuring adequate coverage against
insurable risks. Calculating the
right level of risk cover is a
specialised activity, requiring
considerable expertise. Proper
Insurance Planning can help you look
at the possibility of getting a
wider coverage for the same amount
of premium or the same level of
coverage for the same amount amount
of premium or the same level of
coverage for a reduced premium.
Hence, the need for proper insurance
planning.
Insurance, simply put, is the cover
for the risks that we run during our
lives. Insurance enables us to live
our lives to the fullest, without
worrying about the financial impact
of events that could hamper it. In
other words, insurance protects us
from the contingencies that could
affect us.
So what are the
risks that we run? To name a few - the risk on our lives that is,
the worries of replacement of the incomes that we contribute to the
running of the household), the risks of medical contingencies (since
they have the capability of depleting our wealth considerably) and
risks to assets (since the replacement of these can have tremendous
financial implications). If we can imagine a situation where our
goals are disturbed by acts beyond our control, we can realise the
relevance of insurance in our lives.
Insurance Planning takes into account the risks that surround you
and then provides an adequate coverage against those risks. There is
no risk not worth insuring yourself against, and insurance should
first and foremost be looked as a measure to guard against risks -
the risk of your dreams going awry due to events beyond your
control.
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