Why your list of investments must include insurance?

New Delhi: When building an investment portfolio, one of the most important factors to consider is insurance. However, insurance requirements differ greatly from person to person, necessitating meticulous planning and a thorough understanding of one’s requirements.

Because each person’s financial capabilities, assets, and liabilities are unique, it does not take a one-size-fits-all approach. An insurance portfolio should be constructed in such a way that it supports the individual's investment plans and ensures that financial goals are not jeopardised in the event of an unforeseen event.

Steps to buying insurance

The first step toward building an insurance portfolio is to have a thorough understanding of one's needs. People mostly think about two kinds of insurance: life insurance and general insurance. For example, life insurance is an important tool for achieving financial goals such as a wedding, a child’s education, purchasing a car, purchasing a home, and so on. It is also an excellent long-term savings option because it guarantees a maturity amount based on the risk tolerance and need of the investor.

General insurance, on the other hand, helps to create a financial backup for losses sustained by assets such as a home, automobile, and health, among others. Ideally, the insurance portfolio should include both life and general insurance.

Benefiting from insurance

Companies now offer a variety of insurance policies that address a person's various life goals. The policies available, particularly in the health and life segment, are so diverse that there is nearly a policy for every life goal. Health insurance is also dynamic today, catering to various health needs of individuals. There are various policies and covers that are curated to address people's various health needs.

Every insurance policy has its own set of financial advantages and can help you achieve financial independence.

While it is difficult to overstate the importance of each insurance plan, consumers should select insurance to assist them in creating wealth and managing their savings. According to industry experts, working with digitally enabled insurance advisors who can provide consumers with the best insurance options based on their insurance needs is the best way to choose the most appropriate insurance.