Insurance in simple words is a protection and this is also vital part of personal finance. Insurance should be considered as expense not saving. Majority of pupil will mix insurance and investment , that is the major reason most of them not getting enough cover during emergency neither they will get good returns.
Most of us having Endowment/ Money back plan in 80C section for personal tax, without even knowing how much we are losing . Yes these plans are wealth destroyer to know about this please go through Life Insurance Section.
Health Insurance also important as cost of health care sector increasing exponentially and here I am not telling about your company insurance. Failure of having proper health insurance is also reason for wealth destroying. To know more about it please visit Health Insurance part.
There is vast variety of insurance , still in personal finance below 2 insurances are important
- Life Insurance
- Health Insurance