Why you need to buy insurance: Explained with example
Businesses sometimes are unpredictable and have unforeseen risks, which may affect or lower the anticipated profits and if need be we might as well have to induce further capital and here your savings may help for the shorter duration, since you have not quantified how much savings you have accumulated till now.
)
11:08 AM IST
I am 34, married, and have a five-year-old child. I am a businessman with a lot of savings and have taken a housing loan which helps me save tax. Do I need insurance? - Kunal Parikh
Businesses sometimes are unpredictable and have unforeseen risks, which may affect or lower the anticipated profits and if need be we might as well have to induce further capital and here your savings may help for the shorter duration, since you have not quantified how much savings you have accumulated till now.
While it is a good thing that you have a lot of savings it is important to continue with it. However, it is better to have an objective so as to create a discipline around your savings. Insurance is an avenue which helps you to do that. Insurance helps you to save or invest for your child, retirement, or any other goals in a disciplined manner in various solutions based on your needs and risk appetite.
Watch this Zee Business video
However to begin with and since you have already taken a loan, it is imperative for you that you first need to safeguard your family against these obligations and you may begin with covering yourself with a term plan. Aside to all these benefits, insurance also helps in savings your taxes.
By: Sumit Rai
(The writer is MD and CEO- Edelweiss Tokio Life Insurance)
(Clear your doubts with regard to life insurance. Send your queries topersonalfinance@dnaindia.net)
Source: DNA Money
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
Rs 13 Lakh Lump Sum Investment in Mutual Funds: How many years will it take to create a Rs 1 crore, Rs 2 crore & Rs 3 crore corpus?
)
Best Multi Cap and Flexi Cap Mutual Funds with Highest SIP Returns in 3 years: Rs 25,000 monthly investment in No. 1 fund has grown to Rs 13.5 lakh in just 3 years
)
9 Stocks To Buy For Short Term: Analysts suggest buying largecap, midcap, smallcap scrips for 2 weeks; Godrej Consumer on the list
)
Pay 0 Income Tax on Rs 15.25 lakh Income: Why your Rs 15,25,000 salaried income can be tax-free in new tax regime
)
SBI vs Canara Bank 10-year FD For Senior Citizens: Compare maturity of Rs 3.5 lakh- Rs 6.5 lakh deposits in both PSU banks
)
Top 5 ETFs With Highest Annualised Returns in 5 Years: Rs 100,000 invested in No. 1 exchange-traded fund is worth Rs 5,22,257 now
)
Power of Rs 1,50,000 PPF Investment: How many years will it take to generate over Rs 1 lakh/month tax-free income from Public Provident Fund?
11:08 AM IST