People often build an investment portfolio but forget to have an insurance portfolio as well. One should take at least four types of insurance cover: -
1. Term Life Insurance: For protection of family's future in case of eventuality. It should be sufficient enough (15 times of annual salary/income) for a specific period say till retirement.
2. Health Insurance: Adequately cover medical expenses of individuals or family members, including doctor visits, hospitalization, and treatments.
3. Accident and Disability Insurance: Replace a portion of your income if you're unable to work owing to eventuality or partial/complete disability.
4. Critical Illness Insurance: Provide lump-sum cash payments in case of serious health conditions (e.g., cancer, stroke, heart attack, kidney failure, organ transplant, coma, etc.).
The other insurance like household insurance, vehicle insurance, liability insurance, business insurance (if applicable), travel insurance, and any other applicable insurance.
Key Considerations for a Balanced Portfolio:
a. Comprehensive Coverage: Ensure all critical risks are addressed.
b. Adequate Limits: Coverage should match the value of your assets and potential liabilities.
c. Affordability: Balance premiums with your financial health.
d. Customizations: Tailor policies to meet your specific requirements (e.g., riders, endorsements).
e. Periodic Review: Adjust coverage as your life circumstances change.
The best way to be protected is to construct and pay into a public social security system. In the Nordic countries, these protection programs are paid when one has an income through the national tax system, and they are income-dependent. When we (as individuals or families) need benefits or payment for services, this is paid through this public social security system. Plenty of research shows that such a system combats poverty and income differences in a population.
- Badges
- Science topic
- Similar topics
- Political Science