Insurance is one of the primary aspects that people should take into consideration while building their investment portfolio. However, insurance needs may vary drastically from individual to individual, and it requires meticulous planning and a holistic understanding of one’s requirements.
It does not follow a one for all approach, as every individual is different in terms of his or her financial capabilities, assets, and liabilities.Indraneel Chatterjee – Co-Founder – RenewBuy says, “One should build an insurance portfolio in such a way, that it supports the individual’s investment plans, and ensures that the financial goals are intact, in case of any unforeseen situation.”
The first step, experts say toward building an insurance portfolio is to have an all-inclusive view of one’s needs. People majorly look at two insurance categories- life and general insurance Life insurance, for instance, goes beyond providing only protection, it is also an important tool to achieve financial objectives related to wedding, child’s education, buying a car, buying a home, etc.
Chatterjee points out, “It is also an excellent savings option for the long term, which assures a guaranteed maturity amount based on one’s risk appetite and need.”
General insurance, on the other hand, helps in creating a financial backup for losses incurred for assets like home, motor, and health, amongst others. “The insurance portfolio should ideally have a combination of life and general insurance,” adds Chatterjee.
Today companies are providing multiple insurance policies, which cater to multiple life goals of a person. The policies offered especially, in the health and life segment are so extensive, that there is almost a policy for every life goal. Chatterjee explains, “Health insurance too is dynamic today and caters to different health needs of individuals. There are different policies and covers, which are curated to address the different health needs of people.”
Every insurance policy comes with its sets of financial benefits and plays an integral role in paving the way to financial independence.
Chatterjee says, “While it is difficult to highlight the importance of each insurance plan, consumers should opt for insurance to facilitate their wealth creation and savings management.” The best way to choose the most suitable insurance, industry experts say is to take the route of digitally-enabled insurance advisors, who can guide consumers with the best insurance options as per one’s insurance requirements.