Personal Finance · 4 min read
Insurance: Protecting What Matters
Insurance transfers rare, expensive risks (death, illness, accidents) to an insurer for a small premium.
Why it matters
One uninsured event can wipe out years of savings.
Advantages
- Protects family income
- Covers large medical costs
- Peace of mind
Risks
- Wrong product mixes insurance with investment
- Underinsurance leaves gaps
Real-world example
A 30-year-old with ₹1cr term cover pays ~₹10k/year — a fraction of what family would need if income stopped.
Key takeaways
- Buy term insurance for life cover
- Separate insurance from investment
- Get health insurance early, when premiums are low
Quick quiz
1. Which is a pure protection product?