Insurance planning is about having adequate protection. When you buy insurance, you enter an agreement with an insurer. This is where you pay a relatively small premium to the insurer and you are covered with a relatively big sum assured. So if anything happens to you, the benefit according to the insurance contract will be paid out to you and your loved ones. You are basically transfering your risks to the insurer.
Yes, insurance plan can also serve as a saving, investment, etc. But the most important thing about insurance is always about the protection!
Many people have many insurance policies, but most of them do not have enough coverage. Why? It is because they are concern more with the savings and investments portion of the insurance plan, rather than the protection amount.
So it is not important how many insurance plans you have, but the amount is.
Now that you know, when you want to start planning, always remember, with the budget that you have, focus on the protection first.
Cheers! Have a great day.
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