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How Does Insurance Planning Help You?

Insurance planning, by definition means analysing the types of insurance needed by a person to safeguard their life, assets or property. Today, you can insure anything. From the usual life, car, theft and property insurance policies there are also ways to insure one’s mobile phone, laptop, hair or even smile. An insurance comes in two forms:

  • Insurance of assets

  • Insurance of one’s ability to create those assets.

An effective insurance planning serves you in a myriad of ways. Here are five ways you can benefit from insurance planning:

Helps you safeguard your most important asset – You

This is the most important insurance benefit you reap. You insure everything that is important to you. But what could possibly be more important than your own life and your ability to make a living out of it? The importance of insurance increases as we move ahead in life. Once we take a job, find a partner, start a business and have a family, it becomes all the more important to have an insurance since it is all about providing a safety net to the ones we love. Your family largely depends on you to provide financial support. So, it is vital that they are financially secured even in times of an unexpected event. This is exactly what an effective insurance planning does.

Reduces stress during tough times

Nobody knows what lies around the corner. An unexpected event can turn your life upside down within minutes. An event like illness, accident or death may leave your family in tremendous emotional stress and grief. Insurance although does not cover for the loss and emotional pain, but it can significantly reduce your financial burden making it one less thing to worry about so that you can focus on rebuilding your lives again.

Makes sure you are financially secured

When thinking of insurance planning, we generally forget to consider this insurance advantage. Whatever financial position you are in today, one unexpected event can see it loosen up in a jiffy. With the right insurance, like HDFC ERGO’s customisable plans, your family can continue to enjoy financial freedom and move forward.

Peace of mind

No amount of money can replace you or compensate for your health and well-being. The role you play in the family cannot be replaced. But having an insurance plan at hand will ensure you peace of mind that even if anything happens to you, your family’s financial needs will be assisted by insurance.

You leave behind a legacy

The lump sum compensation given to your family after you have gone can secure the future of your children and family and help them support their education and financial needs and protect their standard of living.

Thus the importance of insurance planning cannot be underscored enough. Make sure you have the types of insurance required by you.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the purchase.

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