Paying huge premiums does not necessarily mean that you are adequately covered.
It is an irony the way insurance products are packaged and sold in the market. In the guise of investment or tax saving, we lose sight of the very basic reason of investing in an insurance policy.
We do it to protect us and the wellbeing our family against any unforseen event. Some the areas one needs to look for:
- Life (Term Cover)
- Health
- Personal Accident
- Critical Illness
- Household / Home insurance.
The extent of coverage is dependent upon the level of risk you are exposed to. For instance, Life insurance - one needs to look at family dependency on your income, including loans and liabilities, future goals etc.
There are many plans available in the market - Endowments, Moneyback, Unit linked to name a few and several variations (child plan etc) for each of them. Many of these plans combine Investment with the Protection making it even more complex to understand. They also often work out far more expensive than to buy a Term Cover and invest directly into the market.
Protection and Investment are two separate needs and should be dealt with separately.
Your Pandey Investments advisor will help:
- Arrive at the appropriate risk cover you need
- Compare quotes across multiple Life and General Insurance providers
- Provide research support (eg claims ratio)
- Assist your family in case of claims
Insurance provides the basic foundation for your financial plan. Please make sure you lay a solid one and build a secure financial future for your family.
