Proper preparation prevents poor Performance
Whenever we make a financial plan or any plans for that matter, it’s our duty to do the error proofing so that come what may we can achieve our desired goals with at least 90% accuracy. By error proofing we mean, we should try and foresee the probable uncertainties or situations that could arise. However we are so busy in our daily chores that we miss on this particular check point.
We don’t have to wait for a Covid-19 like to situation to understand the importance of a term plan, health insurance or Emergency funds. At USP FinPro, we have always stressed on our Clients’ maintaining the emergency funds which will take care of their expenses anything between 3 to 6 months. This situation needn’t arise due to a pandemic only; it could be because of anything like a lay-off, accident, critical health situation, etc. The issue is we do not want to imagine uncomfortable situations in which we could be due to n number of reasons.
A Term plan is a back-up plan for the family which will not have to compromise on their standard of living or Life goals whether or not the bread winner is there. Let’s look at it like this, do we always come across a situation of punctured tyre whenever we drive, still we carry the stepney in car as a part and parcel of an emergency kit. Then why not the term plan? To take care of the family in case of an financial emergency, give it a thought.
A health insurance plan again should be a part of our emergency kit irrespective of whether we have a cover from the Employer or not. The reason being, when we are dependent on the Employer Mediclaim, it doesn’t cover us for the notice period or even after retirement. Also a health insurance plays a major role in your personal finance cause if the type of medical expense is of recurring nature it will create a permanent damage to your long term planning for your major family goals like you , your spouse’s retirement, Child’s higher education, etc.
