INSUBCONTINENT EXCLUSIVE:
Every earning person should have a life insurance cover to ensure their family is adequately securedThe coronavirus pandemic has
unambiguously shown that life is unpredictable and sudden medical emergencies can affect our physical and mental health, apart from throwing
During this pandemic, many households have been struggling to deal with the loss of their loved ones to the disease
This has taught us to immediately put into action a contingency plan to remain financially prepared to deal with future shocks, be it
cancer, a liver problem, or any other critical illnesses
So how do you prepare for such emergencies?The first step is to get insurance cover to ensure you have the financial means to tackle the
Follow it up by building a fund that you can dip into in times of medical crises, without altering the money flow to your pre-set goals.1
InsuranceGet health insurance as well as life insurance.Health insurance: Given the rising cost of healthcare in the country, it is
necessary to have a health cover that gives you adequate protection for critical illnesses
For those working in the private sector, most employers provide health coverage to their employees
However, it's wise to have a separate insurance policy, so that if you are faced with a job loss you will continue to have your own
protective shield when the company insurance will cease to exist
You can start with a Rs 5-lakh cover and as you grow in your career you can top-up the plan.Life insurance: Every earning person should have
a life insurance cover to ensure their family is adequately and financially secured in case of an untoward incident happening to that person
It is a contingency plan that is solely aimed at securing your family.2
Create an emergency fundInitiate creating a separate fund to deal with medical emergencies in the family
One you have planned to do that, it is important to figure out how big your fund should be
It depends on what sector you work in
If you are working in a booming sector, say IT, then you can increase the size of the corpus
Also, ensure that you can have access to it at short notice
A long-term investment vehicle with lock-in periods is not ideal for emergency funds
Fixed deposits and short-term investment instruments are good examples of building a corpus for future emergency needs.
