Insurance & Risk Management

We see Life Insurance as one of the tools in the process of Risk Management. Process involves identification of all the risk attached to one’s life.

Most of us are aware of one Risk i.e Risk of death. The biggest asset for any family is the main bread earner of that family. Any loss or damage to that asset may cause a big financial loss to the family in terms of his future expected income. This may happen due to death or any critical illness. Insurance protects the family by transferring the risk of loss to insurance company. Therefore, it becomes imperative for an individual to hedge or protect his family’s life against the risk of his death or critical illness, by insuring himself.

Most of us do identify the risk of financial loss to the family due to early death; very few (esp. in India) understand and identify the risk of living too long, which requires serious planning. Due to improvement in medical science mortality age has increased over the years. Also, due to lack of social security or structured pension fund sector, most families in India carry risk of living long with no savings to service his/her daily expenses or maintain their standard of living.

Culture in India in the past (read joint families) speaks for low concentration on building up wealth for retirement, where the children were expected to take care of the parents, etc. Most of us today want to live life independently and with dignity. Things changing at a fast pace and fast emerging concept of nuclear families in our country, one needs, on a priority basis, to plan for his/her retirement and start investing from his/her early days of his/her career. Delay in planning will cost him/her with much heavier investments amounts in the future periods.

Insurance companies provide varied products catering to retirement planning, enabling the accumulation of a huge sum, which in turn, enables them to provide regular fixed pension after your retirement for life.

Through a combination of cover and wealth creation schemes, insurance also caters to other objective based planning – e.g., children’s education, children’s marriage, to buy a car, to buy a house, foreign tour etc. For instance, an individual can invest regularly to accumulate a huge sum for his child’s education or marriage while he’s alive and at the same time provide the same amount through a life cover in case of an unfortunate event before the maturity.

On the basis of which life stage you are in and the corresponding insurance needs, plans we offer, can be categorized into the following types:

Ø      Wealth Solutions

Ø      Retirement Solutions

Ø      Education Solutions

Ø      Securing Life