What is Insurance Planning?
You work hard to earn an income, provide for family expenses, invest the surpluses to accumulate assets and meet your financial goals in future. However, various unwanted events can hamper your efforts and become risks to achieving your goals. Some of the risks lurking around you are death, disability, illness, damage to property etc. These events can deplete your assets considerably, disturb your plans and discourage you in achieving your goals.
Therefore it becomes extremely important to safeguard your efforts against the possibility of such risks. Insurance is the means for it and acts as a hedge against such risks. The purpose of Life Insurance is to ensure that in the event of death, the dependents are provided a monetary compensation to lead the life with lifestyle as is prior to death. In the case of non-life insurance, say Health Insurance, the purpose is to compensate you for expenses incurred on treatments and medicines.
You may already have some insurance policies and paying premiums regularly. However, you may not have appropriate policies and adequate covers on them. Insurance Planning is about identifying the insurance types you need and the cover you must have on each of them. It is about ensuring that you will be able to tackle risks freely if they occur and enabling you to pursue your plans seamlessly to meet your financial goals.
Insurance Planning is in fact a part of Financial Planning. It is a process, not a product. This process involves
The outcome of Insurance Planning process is a ‘Insurance Plan’ document. This document spells out the details on insurance types and respective covers you must buy to meet your insurance requirements. If you follow it, you are adequately prepared to meet any unexpected events in life without any financial loss to you.
Why should you have an Insurance Plan?
Insurance Plan makes sure that you are neither under-insured nor over-insured but aptly insured. A few but not all benefits are:
What Insurance Planning is not?
Here are few things that Insurance Planning is not:
How can we help you?
We are CERTIFIED FINANCIAL PLANNERs and we have a professional service called ‘Insurance Planning’. Although, this is a part of our ‘Financial Planning’ service, we also offer it as a stand-alone service. This is a fee-based service using which we can engage, design and deliver an Insurance Plan to you. We can also help you in initial implementation of the plan and then tracking its progress on regular basis.