- Date : 21/12/2017
- Read: 4 mins
Spending isn’t always bad, but here are 5 things you could avoid spending on- with just a little planning.
- Your parents’ health:
What: We all want to take care of our parents, so they can live a happy, secure life. But we rarely think about what this can cost us.
When: Insurance companies increase premium the older you are. If you have an existing medical condition such as cholesterol, high blood pressure, diabetes, etc. you may have to pay exorbitantly high premiums to get a policy that doesn’t cover lifesaving cancer screenings, treatments, or follow-up care.
How: Even if your parents are covered by their company’s group health insurance policy or yours, it’s essential they get a policy of their own because that cover could be limited in terms of the kinds of diseases covered, the severity of those diseases, and the cover amount. Consider a health insurance, a critical illness policy (for major treatments and surgeries), or a disease-specific health plan.
- Travel Blues
What: Imagine you’re on a trip abroad, whether for work or leisure, and you lose your baggage, or your passport or your flight gets cancelled, or you suffer an injury. Do you know how much that can cost you in a foreign country?
When: Before you go abroad, make sure you are properly insured, after having considered policy exclusions. The country you travel to influences what kind of policy you get, because restrictions may vary, and certain countries are Schengen countries. Senior citizens too may require a different policy.
How: To learn more about the 3 types of travel insurance coverage in India- Medical coverage, luggage protection, and Trip protection- click here.
- Car hassles
What: Do you know how much it could cost to get your engine fixed if it breaks down during the rains? Or if you get into an accident? Or if you lose your car keys in a strange place?
When: You need insurance for your car whether it is new, or second hand.
How: Third party car insurance, that covers damage to third parties and their cars, is mandatory by law, so you get it when you buy a car. But that’s not comprehensive, and can leave you exposed to lakhs of repair bills. You need a well-chosen policy with all the right add-ons or ‘riders’.
- Damage to your home
What: This is what happens to your home in an earthquake. There’s also the risk of landslides, floods, tsunamis- these events can occur without warning and leave lakhs of damage in their wake. There’s also robberies, fires, and other manmade disasters.
When: Make sure you get insurance the minute you buy a new home and make sure it is customised according to the risks your home is likely to face. For instance, earthquake-prone zones.
How: You need home insurance, not just for the building itself, but for the components inside it, which come together to create a life for you and your family.
Related: 4 Situations Every Home Owner Fears
- Your future
What: Want to attend college abroad? Want to have a great, big Indian wedding? Want to give your kids the best possible education? Want to have a comfortable and happy retirement, with no financial worries?
When: All the above are dreams many of us share in some capacity, but they come at a price. These goals are what we plan for our entire lives, but we often delay the planning!
How: First step, get life insurance, which will ensure that your family won’t be left stranded in case something happens to you. Remember, your insurance needs change at every life stage. Secondly, build your investment portfolio through a good mix of financial instruments such as Mutual Funds, ULIPs, Real Estate and other assets.
This National insurance Day, do yourself and your family the favour of securing happiness in the present and the future!