A rupee saved is a rupee earned was what our elders used to say. I’ve realised today after all these years of putting in hard hours at work that the saying is only partly true. A rupee saved today would become 9/10ths of the same soon. Inflation is affecting our wealth creation ability in the sense that it is not allowing us to take full benefit of our money.
Apart from this, the tendency to keep up ‘with the Joneses’ ,easy access to products and services, the technology boom, and a growing aspirational mind-set has resulted in a steady increase in our lifestyle and expenses. Be it education, health or the daily commute etc, our lifestyles are far better than our earlier generations. Like it or not, but our lifestyle expenses are not going to come down anytime in the near future. Hence, insurance is more important and relevant now than it was at any time ever in the past.
A critical illness
Just imagine, if at any point in time, you fall critically ill and have to quit your job to stay at home and recover from it. At this point you have a car, a home, credit card outstanding, children’s school fees and other expenses to take care of. How do you ensure that all these can be taken care of when there is no income? This is where a critical illness plan comes handy. A critical illness plan provides you a lump sum amount on the diagnosis of a pre-specified illness, which can take care of your expenses till you are fit to resume working.
Your untimely demise
Take another instance where you meet with an untimely demise. Your family members will have to deal with more than the loss of a loved one. In such a scenario, a lump sum amount or a monthly pay out will help them deal with their day-to-day expenses and also with loan outstanding etc.
Thus, in trying to maintain a decent lifestyle, it is imperative that you factor in maintaining the right kind of insurance policy so that you ensure that the occurrence of an unforeseen event does not throw you or your family off balance.