Insurance is an important element of any sound financial plan. Different kinds of insurance help protect you and your loved ones in different ways against the cost of accidents, illness, disability, and death.

What would happen - Say for example the only earning member in the family meets with an accident and is incapacitated from going to work for 6 months, what would the family do for their survival? These are the cases where Insurance comes in handy. The insured person can claim an amount corresponding to his disability losses and use the money to sustain his family until he is fit to resume his job.

Expense protection:

It helps us to calculate the corpus required to take care of the family’s future expenses and goals. Inflation diminishes the value of money and hence expenses need to be adjusted to inflation for calculation of protection required.

Human Life Value:

It is the human economic value which takes in to consideration the net present value of all his or her future income. Setting aside the part of income one spends on oneself, the protection required through human life value calculates today’s value of one’s income for the years till his or her retirement.

Needs analysis:

Analyzing the needs of all the dependents and what financial milestones one wants to achieve for them. Next is the assessment of current assets and investments and shortfall due to loss of life. This gap in income can be filled up by insurance.