Role Of Insurance In Financial Planning
Insurance should ideally form a crucial part of your financial plan. Insurance should ideally form a crucial part of your financial plan. You can achieve your financial goals only if you continue saving and investing as per your financial plan. This means that you need to stay prepared for unforeseen eventualities that can derail your financial plan. There could be various incidents in your life that could result in certain setbacks like the loss of income or reduced income, increase in expenses. These incidents can put a constraint on your finances and impede you from staying on track with your financial plan. In such scenarios, an insurance policy can be very helpful. In case of an emergency, it can help you preserve your emergency fund and provide the necessary finances. In extenuating circumstances like an accident, disability, illness, or even death which would lead to a loss of income, an insurance policy can protect you and your family and ensure that your finances are not inordinately impacted.
