Holistic approach to cover risks through insurance plans

Life can throw a number of strange surprises at completely unanticipated times. It is a culmination of a number of unforeseen events, after all.

- Ashwini Kumar Sharma

Many people continue to make predictions and hold onto the hope that nothing bad will happen to them. Though there is nothing wrong with optimism, it can occasionally get one into difficulty, particularly when it comes to one’s finances.

Risks can be divided into two categories: insurable risks and non-insurable risks. Making an emergency fund is the best way to address non-insurable risks, while life and health insurance policies are the best ways to address insurable risks.

At every stage of our lives, we continue to face risk, yet there are some necessities that must be protected against. Although it is impossible to completely eliminate risks, it is possible to reduce their negative effects on one’s financial life. Let’s look at how to financially protect agsisnt risks.

Life Risk Protect through Term Insurance

The financial planning process for an individual begins by identifying the various goals at different stages of life. To achieve them one has to be alive and keep funding them till they arrive. However, the risk of dying early exits which could derail the entire investment process. The surviving members of the family, in addition to the mental trauma, could also suffer from loss of income thereby making long term gaols vulnerable to the circumstances.