Recently I was booking an air ticket for myself. My wife insisted me to buy insurance cover for travel. I politely refused and here comes the googly. She told me "You only keep suggesting everyone buy insurance". Ohh God!! I was trapped :). I replied that if start buying each and every insurance cover under the sun then my entire income will go towards payment of insurance premium. I covered this point briefly in the post, Critical Illness Plan - Do I need it? Normally the financial planners suggest that insurance should be need based. The biggest problem is how to arrive at logical and ... Read More
Life Insurance Plan – 5 Possible Reasons Why You Should Not BUY
Till date, all my posts on life insurance plan were focused on why we should avail life insurance plan. At the same time, it is a fact that same shoe doesn't fit all. In certain cases, a life insurance plan might not be required. To clarify that in this post, life insurance plan means term insurance plan. Normally "Insurance" in India means "Life Insurance" only :) but traditional plans like money back policy, endowment plans etc. From a personal finance perspective and as a thumb rule, if you buy any financial product then you should ask 5W's i.e. What, Why, When, Where and Who/m. The ... Read More
Housewives – 5 Steps to Financially Secure The Future
According to a rough estimate, India has approx 60 Mn Housewives. The surveys suggest that there is a very little financial awareness among housewives of the society. Thanks to male-dominated Indian society. In India, financial planning is linked to the breadwinner of the family. Logically, there is nothing wrong in it from a financial perspective. It's a misconception that Financial Planning is always linked to Investment. To financially secure a future and financial planning are different from each other. In past, there was a proposal floated to include the contribution of housewives to the ... Read More
Insurance – Top 7 Excuses
Insurance Penetration in India is one of the least in the world. Through my blog, i try to create awareness about the importance of Insurance products. Insurance is not a compulsion but the necessity. One of the key reason for low penetration is the lack of knowledge about the importance of Insurance. It is one of my favorite topic in personal finance space. A good financial planning fails if the person is not insured. Therefore, experts recommend that Insurance should be an integral part of Financial Planning. Let me share an example of Person A. He died in an accident and his wife wrote to ... Read More
Click 2 Retire – An Online Pension Plan
Recently one of my friends asked my father "Which pension plan you opted for retirement?". My dad laughed and told him that "Govt provided Pension" was his only pension plan. I wish that today's generation could have enjoyed the same privilege. With an uncertain economy and job environment, there is an enormous pressure on the current generation to kick start financial planning ASAP. As an individual, my Financial Planning is much more sophisticated than the previous generation. During Good Old Days, My father's only worry was kid's education and marriage. These days besides kids education and ... Read More
Critical Illness Plan – Do i need it?
"A Critical Illness Plan is must for you," last week my Relationship Manager told me. It covers 20 Life-Threatening Diseases, She further added. It put me in a fix whether to buy a Critical Illness plan or not. As i mentioned in my previous posts on insurance that insurance can only be sold through FEAR factor. I agree that term insurance plan and health insurance plan are MUST HAVE. Once my relationship manager knew that i already have these two plans, she started pitching me other riders/plans. Personal Accident Cover and Critical Illness plan are two plans that can be easily marketed. Once ... Read More