5 Financial Lessons That We Need to Know

The pandemic has taught us many valuable lessons over the past months. And one of the biggest takeaways we have from the year gone by is that insurance is important. Very, very important.

It helps keep your family safe in times of an emergency. It ensures that your finances are not burdened due to urgent or unexpected expenses. And it also gives you several other benefits along the way.

5 Financial Lessons That Taught Us in 2021 - ABSLI Let's take a look at some of the key lessons that 2021 has taught us about insurance.

Many employers offer group insurance plans to their employees. These plans undoubtedly come with some great benefits, but they may not be enough on their own. In most cases, the cover may be insufficient, and they will certainly not be tailored to your own unique needs. That is why it is always important to have your own insurance cover too.

For instance, with your very own life insurance or health insurance policy, you can purchase specific riders that may come in handy during an unexpected period of hospitalization or a diagnosis of any critical illness. These benefits may not be available in your group insurance plan.

Additionally, if you switch jobs or if you leave your current employer, your insurance benefits also lapse, leaving you uninsured. This is why it is always a good idea to have your own insurance policy.

It is not enough to just be insured. You need to be adequately insured. The coverage that you purchase should be enough to help you meet your financial goals. And it should be adequate for your family in case something untoward happens to you. In the case of health insurance, the cover should be enough to meet the costs of hospitalization, medical treatment or any other medical emergencies that may crop up.

So, it's best to first quickly assess your needs before you decide on the coverage for the plan you wish to purchase. If you are buying life insurance, make sure that you factor in the cost of your everyday expenses and your family's daily needs, any debts and liabilities in your name, as well as the funds needed to meet your family's life goals and major milestones.

The past year also showed us the clear importance of two kinds of insurance, namely life insurance and health insurance. Life insurance comes in handy in case of the demise of the earning member of the family. In other words, it offers a financial safety net to the dependent members of the family. Health insurance, on the other hand, helps protect your savings in case of a medical emergency, since it covers the cost of treatment, medicines and more.

Both kinds of insurance are important in this day and age, because life can be quite uncertain, as the pandemic showed us. And this, coupled with the rising costs of medical treatment, has made life and health insurance essential for everybody.

As you age, your family may grow, and your financial needs and goals may evolve with time. For instance, if you purchased your insurance plan at the age of 25, you may have factored in goals like debt repayment or a home down payment. However, at 35, you may have other financial goals on your radar, like saving up for your children's higher education.

Similarly, the health insurance plan you purchased at 25 may be enough for you, but it may not cover your spouse and children, who came into the picture much later. So, it is essential to review your health insurance coverage and your life insurance coverage from time to time, so you can check if the cover available is enough to meet your growing needs.

And last, but certainly not the least, it is essential to let your nominees and beneficiaries know about the insurance plans you have in place. This is because the very purpose of insurance is to ease the financial burden of unforeseen developments. And to enjoy this advantage, you need to register a claim with your insurer.

Now, in case something untoward happens to you, your family should be aware of the protective life insurance coverage that you have purchased. Only then can they claim and make use of the benefits. Similarly, in case of health insurance too, your loved ones need to know if you have a cover in place. That way, in case you are hospitalized, they can file a claim promptly.

These takeaways may seem simple at first glance. But they can go a long way in securing your finances and your family's future. All things considered, insurance is a financial product that can be very beneficial if you do these things right. After all, it is always better to be prepared for an emergency that may never occur, rather than being unprepared for an emergency in case it happens, isn't it?

WHY EMPLOYER INSURANCE IS NOT ENOUGH

2021 made it clear how important life insurance can be. And you may be patting yourself on the back because your employer offers you a good insurance plan. But is that enough? Not quite. Our blog goes into the details of why you need more coverage than just what your employer offers.

Read it here

GIVE YOUR FAMILY A RELIABLE SAFETY NET TODAY, WITH AN ADEQUATE LIFE COVER

If you're the sole earning member or the primary earning member of your family, it's natural to worry about the future of your loved ones. The ABSLI Assured Savings Plan can help put your worries to rest, thanks to the guaranteed¹ financial payouts it offers your family in case something happens to you.

There's a sizable and dependable financial safety net that this plan gives you. Plus, it also comes with other benefits like loyalty additions and riders to enhance the protection offered.

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