Protect Your family Financially
It is very much important the bread earner in a home lives till all the financial goals for his/her family are fulfilled. If proper planning is not done, all the financial goals of the family gets shattered.
Recently a software employee of a reputed company, died due to heart attack. He maintained his health by proper walking etc., but still due to many other work related and other issues, unforeseen thing has happened. He was married and had 2 children less than 5 years old. His wife though properly educated, was not working. He was a conservative person not investing in risky assets like MF, Equity. Was paying Insurance premiums of Rs.1,20,000/- per annum. All the plans are traditional which given coverage of 15 Lakhs approximately. Thank god, he has taken home shield. home loan doesn't inherited to his wife.
But wife will have to work very hard to make her career, will have to take care of children, educate them.
HAD THE GUY DONE PROPER RISK MANAGEMENT, HIS FAMILY WOULD HAVE BEEN IN A BETTER POSITION FINANCIALLY. THOUGH HE WAS PAYING PREMIUM OF RS1,20,000/- PER ANNUM HE WAS NOT PROTECTED ADEQUATELY TO THE RISK OF LOSS OF FINANCIAL INCOME IN THE EVENT OF DEATH OF THE EMPLOYEE.
POINTS TO PONDER WHILE RISK MANAGEMENT:
1. Any person should have an average of 10 times of his annual income atleast as insurance cover to protect the family.
2. Life insurance is important, But Health insurance is much more important, fact being, death can happen only once, but a person's health can be not well many times in a life time.
3. One should have an adequate risk cover for Personal Accident also.
It is very much important the bread earner in a home lives till all the financial goals for his/her family are fulfilled. If proper planning is not done, all the financial goals of the family gets shattered.
Recently a software employee of a reputed company, died due to heart attack. He maintained his health by proper walking etc., but still due to many other work related and other issues, unforeseen thing has happened. He was married and had 2 children less than 5 years old. His wife though properly educated, was not working. He was a conservative person not investing in risky assets like MF, Equity. Was paying Insurance premiums of Rs.1,20,000/- per annum. All the plans are traditional which given coverage of 15 Lakhs approximately. Thank god, he has taken home shield. home loan doesn't inherited to his wife.
But wife will have to work very hard to make her career, will have to take care of children, educate them.
HAD THE GUY DONE PROPER RISK MANAGEMENT, HIS FAMILY WOULD HAVE BEEN IN A BETTER POSITION FINANCIALLY. THOUGH HE WAS PAYING PREMIUM OF RS1,20,000/- PER ANNUM HE WAS NOT PROTECTED ADEQUATELY TO THE RISK OF LOSS OF FINANCIAL INCOME IN THE EVENT OF DEATH OF THE EMPLOYEE.
POINTS TO PONDER WHILE RISK MANAGEMENT:
1. Any person should have an average of 10 times of his annual income atleast as insurance cover to protect the family.
2. Life insurance is important, But Health insurance is much more important, fact being, death can happen only once, but a person's health can be not well many times in a life time.
3. One should have an adequate risk cover for Personal Accident also.
