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INSURANCE PLANNING

When we think and talk about insurance the first thing always to keep in mind is INSURANCE IS NOT INVESTMENT. It is a risk cover measure to protect your loved ones in case of any eventuality.

There are many types of insurances available like Life Insurance, Health Insurance, Motor Insurance, Home Insurance, Travel Insurance, Liability Insurance etc.

You need to plan for all these on a need based method. Because the requirement of all these insurances will change according to Age, Income, Asset value, Time and Place.

When you are planning for your life insurance you need to follow the HUMAN LIFE VALUE and also the INCOME REPLACEMENT methods to arrive at your insurance requirement. There are many life insurance plans but the purest form of all insurance is Term Insurance, which gives a pure risk cover with low premium and no return of premium on survival. People who are in higher income bracket can have two or three types of life insurance policies. It is always beneficial to take an insurance policy at an early age to have the advantage of low premium on long term policy. Endowment and money back policies charge higher premium because of return of premium with add on bonus. Unit Linked Insurance Policies (ULIPs) are suitable for people in the age group of 25-45 years. Need for Child insurance policies are to be looked without any sentiments attached as they are only planning for the future of your children.

Because of mounting cost of treatment and hospitalisation charges it is a must to have Health Insurance for every family. Health insurance for some people even though provided by employer it is better to have another policy separately from outside insurance agency. It is always advisable to have a family floater policy, which covers all the family members .In health insurance policies minimum one day hospitalisation is required, some policies offer day care treatment also with higher premium. Taking policy with Third Party Administrator (TPA) facility gives cash less treatment facility. Pre-existing deceases will be covered after certain policy period depending on the terms and conditions of policy. Policies with hospital cash benefit provide non medical expenses with slightly higher premium. All most all policies cover pre and post hospitalisation expenses depending upon the treatment availed.

Motor insurance is a must as per M.V.act. Comprehensive vehicle insurance not only protects your vehicle from damages due to accidents, but gives protection to you on certain conditions. For frequent travellers it is better to have Personal accidental insurance policy separately.

Timely renewal of insurance policy is essential. Life insurance (Term Policies), Health Insurance, Motor insurance requires immediate renewal, as they generally do not have revival facility. Once policy expired you need to take fresh policy.

It is essential to cover your assets and liabilities from unforeseen incidents and circumstances. Home insurance and liability cover insurance policies help you and protect you from loss of property and income. Travel insurance covers your life as well as loss of baggage ,important documents like visa, pass port when you travel abroad

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