You may know how to become rich fast, but do you know how to stay protected? Don’t miss this top Money lesson

You may know how to become rich fast, but do you know how to stay protected? Don’t miss this top Money lesson


How to become rich fast and successful is the top question in every person’s mind. To achieve this goal, everyone starts working and earning money soon as they land a job after leaving their educational institutions. The focus is entirely on making money. That is good. However, there is something bad there too. Because the money earning drive has not allowed enough time or attention to be lavished on something that is equally, if not more, important for every person. This is a very big mistake that can lead to wasting of all the money you earned or bring an abrupt end to your earning power. 

Apart from knowing how to become rich fast, it is important to know how to protect oneself and the family members against all kinds of tragic losses and emergencies. So, what is that thing missing in your life? That critically important thing is insurance. It is a tragedy that people just forget or ignore taking adequate insurance and that leads to a financial crisis for the entire family.   

Here Harshad Chetanwala, co-founder, MyWealthGrowth.com, explains everything that you must do to really enjoy the money that you earned.  Step-by-step, point-wise guide:
It is extremely important to ensure Insurance planning and that can come even before investment planning or money making. Top benefit? Well, to put it gently, this will ensure financial coverage from insurance money in case of untimely death. In fact, for the family, insurance amount will fill the gap in income. This is crucially important for those families dependent on just one bread-earner.  

Notably, it has been found that insurance demand has gone high due to Covid 19 as people have understood the value of term plan and health insurance.
Which life insurance?  Well, those looking to get themselves and their loved ones insured should know that coverage under selected time period is available under term-plan. In endowment plan – sum assured is back after the end of policy. Also, when it comes to money back policy – sum assured returned in installments in policy term. The Whole life policy provides lifetime cover. 

However, there is one policy that also provides the option of investment along with insurance and that is ULIP – Unit Linked Insurance Policy.

How much term-plan is required?

Notably, Term-plan sales have increased during Covid-19 pandemic times. below are age-wise break-ups:

Till 40 years- 20 to 30 times cover of annual income

You can avail 5 times coverage in case you are above 50 years

Premium of term plan is very less

Insurance money is given to family in case of death during policy period.

Here is how to select health insurance:
Age
Profession
City
Medical history

Family plan vs Single plan
If only bread earner of the family, family floater plan is a good option  
You can add spouse, two children and your parents in your family plan
More coverage in less premium under family floater plan
Treatment of family members in the same plan under family floater plan  
You can also add senior citizen in family plan by paying a little more premium  
Premium of family floater plan is cheaper than premium of individual plan

How much health insurance is enough?
Age 20 years, Metro city, Basic plan- 5 lakh
Person with risky job and liking adventure should add accidental cover
Age 20 years, Tier 2,3 cities, Basic plan- 3lakh
Cost of treatment in big cities also expensive  

Age 30 years, married, children, increase the plan
Be partner in office Mediclaim plan, add children too
Take different family floater plan
Maternity benefit in family floater, should have postnatal cover
Take top-up plan to increase basic plan

Age 40 years, chances of getting ill are more
Heart problem, diabetes, hypertension, chances of cancer
Take critical illness rider plan till 30 lakh
Age 50 years, husband , wife should take care of each other
20 lakh top plan is good enough for basic plan till 50 years
Can post office policy after 60 years.
Plan will be costly for senior citizen.
Add children in office policy
Make super top up in basic plan after 60 years.

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