Having insurance is the best option to protect a family at times of unexpected and unpleasant events. It protects family’s savings and investments from draining out during these time.
But for proper protection, one needs to have sufficient insurance cover and in suitable and appropriate products.
Life Insurance: Insurance is not an investment and in that case Term Insurance is the purest, cheapest and the best form of life insurance.
For example, if we consider an investment / premium of 50,000 per year and maturity of 20 years. In this case, compared to a traditional endowment life insurance plan, a combination of term plan and PPF can give 30% bigger corpus and 5 times higher life cover, with the same tax benefit.
Health & Accidental Insurance: Health insurance and accidental insurance cover ensures that a family member gets the best medical care in case of illness and accidents, without affecting family’s savings.