Simple planning for your family
Ideal I should have shared this on 1-Jan for new year resolution, but I discovered its new financial year that’s more appropriate. In case you are wondering about title, not to worry I am not gone be telling you about family planning, but rather financial planning, hope that clears the air. Also I don’t make any financial gain, if you choose to follow by advice.
I come from finance background and have seen lot of family suffer because major bread earner didn’t take few simple precautions. Hence I am writing you in to remind you “Your Family is all you have and you are all that they have”, hence you ought to be more careful in case you are unable to provide financial support to them.
First thing first take simple “term insurance plan”, contact any agent or website and buy it. Agent might show you all different possible types of plan, just like clothing showroom does, but trust me on this one; you don’t need any fancy plan. These are typical cheap plan compared to other plans because if you don’t die you don’t get anything (stop being typical Indian, don’t think your money goes waste if you survive). On other hand if you have tonnes of money & assets then you can think of skipping this.
As with regards to how much it should be some ways to arrive at number is 1) 10x your annual income or 2) double your annual household expenses and make it 10x. You can be more precise but this should just work fine. Now check out quotes on website and buy the one you are comfortable with, make sure you declare everything in your policy (if you drink alcohol, admit it in form same for smoking etc). Remember it’s your family who will get this money in case you die, you don’t want them to suffer because you didn’t declare some habit of yours. Strict reminder don’t opt for money back policy (you get money if you live, those be worthless some years down the line if you die)
Second buy medi-claim/health insurance – if you go to hospital, this is what will help you, stop thinking I have never meet with accident till date. you can check out typical hospital expense to get idea why I suggest this. Best would be if you can buy for everybody in family, if you can afford it go for it.
In case you have any query, feel to get in touch with me. Do pass it on to your friends and other family member.
Be Financial Responsible individual