Insurance or Investment - What comes first?
Many new prospective investors comes to me asking suggestion for investment schemes where they can get good returns. But I don't start the discussion with just investments. I start by asking them if they have taken adequate health insurance first, and then optimum life insurance coverage second, if they are married or if some of their family members are financially dependent on them. Most of the time, I get a reply that they do not have any insurance. Insurance in India has a very low penetration. Bulk of the people are not insured both in terms of health coverage or pure life cover. And I am speaking of people who has affordability in buying them. Even if they have taken insurance, the coverage amount is insufficiently low. I always advise every individual that they should first buy their health and life insurance cover. If they already have, they must ensure that the coverage is adequate based on their lifestyle. This is the foremost priority. The investment comes later. S...