The very definition of financial planning includes protection, apart from wealth creation and planning for emergencies, as a crucial component of the same. It connotes to systematized use of wealth to achieve future financial goals without jeopardizing ones financial security and more.
However, the general tendencies among people are to focus more on wealth creation and either completely ignore or pay little heed to financial protection. That, in turn, makes them uncovered against possible future emergencies and contingencies.
Considering the neglect on the part of general people as regards to including insurance planning as an inevitable part of their financial planning, Paisa Invest has resolved to dedicate this entire article in the attempt of highlighting the importance of the same. Insurance planning is crucial in ensuring a secured financial future and smooth achievement of your economic goals.
Perks of Insurance Planning to enhance your financial planning:
- Tax reduction: Insurances empowers the beneficiaries of the death policy to avail the amount without paying an income tax for the same. Further, some plans allow investors to receive the cash values of the policies in a taxfree manner.
- Critical illness and medical insurance: Such insurances enables the investors to reimburse their medical expenses while hospitalized by providing the required documents to the insurance providing company as a testament to the genuineness of your condition.
- Reduce the risk: Insurances provides a security blanket to the financial future of the investors against unforeseen eventualities as per the plan. That further leads to the reduction of the uncertainty factor noticeable in the economic portfolio of the investor.
- Ensure the economic prospect of your children: Insurances empowers parents to secure the financial future of their offsprings against any unexpected eventualities that may arise in times to come.
- Cash value of insurances: The accumulated cash value of the whole life plans after a certain period can be utilised for different purposes such as down payments of house and other prominent expenditures. That makes the insurance policies a valuable asset for the investor down the line.
- Financial security of your loved ones: Insurance policies ensures the financial security of the kins of the investor even when they are not around to guarantee the same. Apart from providing financial security to the future of their offsprings while they are alive, it further secures the prosperity of the loved ones in the form of the beneficiaries of the policy even after the death of the investor.
- Affordability: Unlike most investment plans, insurances empowers the investor to save at their convenience by providing a wide range of policies with minimum to maximum premium quarterly or yearly as they prefer. That makes it all the more affordable for the investor.
Thus, are the most fundamental advantages of having an insurance that every investor can avail to make their financial portfolio not merely handsome but also secured and profitable. However, collaborating with a professional financial planner to strategies your insurances as per your financial portfolio to enhance the same can make a whole lot of difference.
Do you need expert assistance on deciding the best insurance scheme your financial prosperity? Contact Paisa Invest today!