Q. My name is Akansha. I run a successful online business and have variable income. I do not have any insurance and I want to buy a term plan along with a comprehensive health insurance plan. Please suggest.
Akansha, as a successful entrepreneur, you must understand the element of risk very well and the need to protect yourself to the extent possible. Buying insurance is a wise decision to protect yourself and your business from unforeseen events.
Let us take a closer look at the two needs you have in mind: a term life insurance plan and a comprehensive health insurance plan.
Term life insurance plan
As the name says, a term life insurance plan provides coverage for a specified term (like 10, 20, or 30 years). If something were to happen to you during this term, the policy would pay out a sum to your chosen beneficiaries. Given your variable income and potential financial dependents, a term life plan can offer crucial protection.
Please bear a few factors in mind to help you pick the right plan.
Coverage amount: Determine the coverage amount by assessing your family's financial needs—how much income will need to be replaced in your absence, outstanding debts, future expenses, etc. The amount should be sufficient to offer your family the financial stability they would need in your absence.
Term length: The term duration must align with your financial goals and obligations. The common terms are 10, 20, or 30 years. Go for a longer term if you have dependents or outstanding loans.
Riders: Some term life plans come with added riders, such as coverage for accidental death or critical illnesses. These riders can enhance the overall coverage of your policy.
Premiums: Term life insurance usually comes with more affordable premiums compared to other types of life insurance. Seek a plan that comfortably fits your budget.
Health insurance plan
A comprehensive health insurance policy provides a protective barrier against rising expenses associated with medical treatments, hospital stays, surgeries, and various other healthcare-related outlays. Considering the unpredictable nature of healthcare costs, a strong health insurance plan is very important in ensuring financial security.
Consider these factors while choosing a comprehensive health insurance plan.
Coverage detail: Evaluate the coverage provided by different health insurance plans. Look for features such as in-patient and out-patient coverage, pre-and-post hospitalisation expenses, ambulance services, and coverage for day-care procedures.
Hospital network: Consider the network of hospitals and healthcare providers associated with the insurance plan. Access to a wide network ensures convenient medical services during emergencies and planned treatments.
Pre-existing conditions: Understand how pre-existing conditions are treated, including waiting periods. Choose a plan that covers pre-existing conditions or has shorter waiting periods before those conditions are covered. Be aware of the waiting period so that you can plan better for potential medical needs.
Premiums: Compare premiums across different plans for similar coverage. Choose a plan with a premium that fits your budget while offering the necessary coverage.
Akansha, as this protection is very important to you, please conduct a thorough research before you decide. Engage a certified advisor to help you. This professional will help you tailor your coverage to your individual situation, financial aspirations and risk profile.
Just as you face and deal with frequent changes in your business, your insurance requirements will also change over time. You must regularly assess your insurance coverage and adjust it as necessary. That approach will guarantee sustained financial security for you and your family.