How to adequately manage Risk

Risks are a part of everyone’s lives and most of us live under the false impression ‘It wouldn’t happen to me’. This attitude is suicidal and can play havoc with one’s finances.

A simple planning can go a long way in protecting you and your family from hardships that arise from unfortunate situations. The emotional and mental trauma is something that can never be quantified or protected but we can at least save ourselves from financial hardships that accompany such unfortunate circumstances.

Following risks need to be kept in mind:

1. The risk of medical problem:

Buy your own comprehensive Health Insurance. Buy accident policy to secure from disability.

2. The risk of untimely death:

Every earning member who has financial dependents must buy Plain Term Plan. Please don’t buy endowment and ulip, they don’t cover you adequately and are damn expensive. And your insurance agent won’t tell you this reality.

3. The risk of earning loss:

Financial security is becoming increasingly important however there is no policy to cover this risk. One must invest through proper financial planning to face such situations.

4. The risk to physical assets:

Fire, theft, earthquakes can expose your valuable physical assets. They can be easily protected by way of home insurance.

Please don’t ignore risk. It can kill you financially.

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