Peace of mind, not just tax savings: Why insurance is a must-have

livemint.com:

Financial planning is essential in today’s world to safeguard and ensure our family’s financial stability. A key component of financial planning is choosing the right insurance. Unfortunately, many people mistakenly believe that insurance is primarily for tax savings and prioritize the tax benefits when selecting a policy, but this is not the correct approach.

While tax benefits can be an attractive advantage, they should not be the main motivation for purchasing insurance. Here’s why: Consider insurance as a financial safety net for both you and your family. It offers vital protection against unexpected events that could impact your finances.

Here are some primary benefits that extend beyond mere tax savings: Security against life’s unpredictability: Life insurance offers a financial safety net for your loved ones in the event of your premature passing. Health insurance protects you from substantial medical expenses in the event of illness or accidents. Financial stability during challenging times: Disability insurance can compensate for your lost income if you’re unable to work due to a disability.

Property insurance safeguards you against financial losses resulting from fire, theft, or natural disasters. Peace of mind: Having the assurance that you and your family are financially protected in emergencies offers priceless peace of mind. It allows you to live life without constantly being preoccupied with “what ifs".

When selecting an insurance policy, prioritize your needs and future objectives over the tax advantages. While tax benefits can be a pleasant addition, they shouldn’t be the primary motivation behind your insurance decisions. Here’s what you should take into account: Life stage and responsibilities: A young