Prajna Capital - An Investment Guide

EVERYONE talks about the importance of being insured. While the debate is pertinent, are we also being taken for a ride by some insurance agents? Today the insurers offer a suite of products which talk about covering every walk of your life. While many are nice to have, the relevant question would be to arrive at the must-haves. This article gives you a run down of the ideal mix of insurance policies that is the need of the hour. 1) Term insurance If you are young and unwilling to make big financial commitments -go in for a pure term cover. It would provide basic risk protection for a period ranging from five to 20 years or even more. The sum insured will be payable to dependants on death of the policyholder. But if the policyholder survives till the maturity of the policy, there are absolutely no monetary benefits. How to take a term cover? You can take a policy at a young age; it works to your advantage. Premium at this stage is lesser and it is fixed throughout the tenure of the po...

You need to choose your insurance based on need and not just to meet tax deduction needs. Life involves facing risks all the time. Everyone faces risks to life, health and belongings. The question you need to ask yourself is whether you have a back-up plan in the event of the unexpected happening to you. Insurance is the perfect answer. Insurance provides protection against the risk of financial loss. While there is growing acceptance that insurance is vital, often there is confusion on what kind of insurance one needs to take, and how much insurance is adequate. There are three broad categories of risks for which a person would require insurance. Personal risk - unemployment, death, disability, illness or accident which could affect the income-producing ability of an individual is one. Property risk - something that may result in loss or damage of an individual's personal property such as fire, theft, flood, earthquake etc is the second. Liability risk - something that exposes a p...