Insurance Protection Advisory

Protection of assets is paramount

The main aim of financial planning is to create assets that will fund your future goals. But various unexpected events during a person’s life can destroy those assets. It therefore becomes extremely important to protect your assets and your future income against the possibility of such losses — so that your goals are not derailed by a single event.

Insurance is a hedge, not an investment

Insurance in its purest sense is a hedge against risks such as death, illness, disability or damage to property. It must be understood that insurance is basically a protection tool, and not an income tool. The rationale governing the purchase of a policy is that in the event of a loss, the insured or their dependants can be compensated to the extent of the cover taken.

This is the single most common mistake we correct. Investment-linked policies bought as savings vehicles usually deliver poor protection and poor returns at the same time. Keeping the two jobs separate — term cover for protection, investments for growth — almost always produces more of both for the same outlay.

Different risks, different cover

There are various risks that come between you and your financial aspirations. Some can be insured against and some cannot. In India you can normally cover yourself for death, medical illness, critical illness, injury and disability, and you can protect property such as your home, vehicles and other assets.

Identify and manage your risks

We will help you identify your risks, prioritise them by financial severity and by the probability of their occurring, and then recommend an appropriate strategy to manage them through suitable insurance products — cover that is adequate without being wasteful. We also review the policies you already hold before suggesting anything new, because quite often the answer is to keep what you have.

Insurance is a subject matter of solicitation. Please read the sales brochure and policy wording carefully for benefits, exclusions, limitations, terms and conditions before concluding a sale.