It does not mean you are completely safe when you have made proper investments. If you think you are safe enough in the future if you have a fixed deposit of say 500,000 INR in the bank. There are two important things that have to be done on time to save your financial future. They are nothing but getting a term insurance plan and a medical insurance plan. Yes, these two form the crux and will provide an iron wall that will help to safeguard your interests.
Need for Medical Insurance:
By God willing, let all the family members be healthy enough to live for 70 years. An average size of a family is around 4 or 5 which will comprise younger and older population. People are exposed to many kinds of illness these days. Even though when people follow a healthy lifestyle, they are still prone to illness. The medical expenses and other emergency expenses might prove very expensive. The average medical inflation in India has been 15% in the past 5 years. The average cost of sum assured has to be around 400,000 INR for the entire family. This amount will go up to 20 lakhs in the next 10 years with the present medical inflation rate.
If you do not have a proper medical insurance to cover up the medical expenses, then you will have to spend from your pocket and your savings will be reduced to zero. You will be forced to borrow money at higher interest rates. Arranging huge funds in the last moment might become so tough. You will have to be highly dependent on your wealthy friends who might not help you instantly.
Need for Term Insurance:
Term insurance products come at attractive prices. They are cheaper and you can get insured for a crore of rupees for a premium of just 10,000 INR. Can you believe it? Nobody knows what will happen next moment. It is highly recommended to have a term insurance at least for the bread winners of the family. They are the trading horses and it is important to protect them from all possible risks.
Assume a family of 5 having a sole bread winner has lost him. The entire family will be in a state of shock and worst is the condition if it has a blend of very young and old generation. The going will get tough without the presence of the bread winner. It is highly impossible to replace that position and the family members will have no option to give up all their happiness. There should be someone to take care of the family and help them to sail smooth even during the troubled waters.
A term insurance of even 50 lakhs will be a huge amount of money which the family can get after the sudden and unexpected demise of the individual. The individual and the family members can rest in peace without any financial trouble.