FAQS

While employer-provided health insurance is a great benefit, it has two key limitations: • It's not permanent: If you leave your job, you lose your coverage. This can be a major problem if you are in between jobs, especially if a medical emergency happens. • The coverage might not be enough: Employer policies often have a basic sum insured that may not be sufficient for a serious illness or a major surgery, especially in big cities where medical costs are very high. A personal health insurance policy ensures you have continuous and adequate coverage that you control.

Beyond the cost, the most crucial things to check are the "Claim Settlement Ratio" and the "Network of Cashless Hospitals." • Claim Settlement Ratio (CSR): This is a percentage that tells you how many claims an insurance company actually pays out. A higher ratio (e.g., above 90%) means the company is reliable and less likely to reject your claim. • Network of Hospitals: This refers to the list of hospitals where you can get "cashless treatment." This means the hospital and insurer handle the bills directly, so you don't have to pay out of pocket and wait for a reimbursement. Make sure the network includes hospitals in your city and, ideally, close to your home.

The right amount depends on your specific situation, including your income, your debts, and the number of dependents you have. A good starting point is to have a life insurance policy that is 10-15 times your annual income

• Term Insurance covers you for a specific period (e.g., 20 years) and is much more affordable. It's often used to protect your family during your working years. • Whole Life Insurance covers you for your entire life and builds cash value over time, but it is significantly more expensive.

Insurance is a safety net that protects you and your family from major financial losses. It can cover things like a serious illness, a car accident, or the financial burden on your family if you were no longer around.

For short-term savings like an emergency fund, it's best to keep them in a safe place, like a high-yield savings account, where the money is easily accessible and earns a little bit of interest.

An emergency fund is a stash of money set aside for unexpected events, like a job loss or a medical emergency. It's crucial because it prevents you from having to use credit cards or withdraw from your long-term investments when life throws you a curveball.

• 50% for your needs (rent, bills, groceries). • 30% for your wants (entertainment, dining out). • 20% for your savings and debt repayment.

• Saving is for short-term goals, like a vacation or an emergency fund. Your money is safe and easily accessible. • Investing is for long-term goals, like retirement. It involves putting your money into assets that can grow over time, but it also carries some risk.

You don't need a lot to start! Many mutual funds allow you to begin with an amount as small as ₹500 per month through a Systematic Investment Plan (SIP).

All investments have some level of risk. The key is to manage that risk by diversifying your investments and aligning them with your goals. The longer you invest, the more time your money has to grow and recover from market fluctuations.

It's simply "not putting all your eggs in one basket." By investing in different types of assets, you spread out your risk so that a poor performance in one area doesn't significantly harm your entire portfolio.