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Managing Your Insurance Portfolio

All investors are absolutely sure of all their investments, especially in relation to mutual funds, fixed deposits, small savings plans and other investments. But when it comes to insurance, they are not completely sure of their insurance needs and the type of insurance they will require. Generally speaking, investors / individuals are not sure what type of insurance policy would suit their needs. The reason for this is that insurance as a financial product is not well understood by people, as there is a lack of adequate information and adequate source of education among people. Also, insurance awareness is not present among people, which is due to improper sale of insurance products by insurance agents.

It is very important that you understand the different insurance policies and manage your own insurance portfolio. Managing your insurance portfolio is not a particularly difficult task, all you need to do is divide all your insurance operations into simpler steps. Managing an insurance portfolio involves following four steps:

1) Determine your needs

Insurance itself is a very broad category and before purchasing any insurance policy, you must be absolutely sure of your insurance needs. In very general terms, anyone looking for insurance has one or two very basic needs:

A) Life coverage
B) An investment associated with life coverage.

Many insurance applicants generally choose the second option as coverage for their lives, in addition to providing them some return on their investment. But this is where most insurance applicants have been betrayed. In the ideal scenario, you should only choose one thing at a time, so if you are looking to invest, you should choose a few different investments that you prefer from mutual funds, gold, stocks, etc., as a return you will get. invest in insurance. The insurance policy is very low. And as an investment, it also reduces your life coverage. Also, if you select both options separately, for a longer period of time it will be better to separate these two objectives.

2) Quantify your needs

Once it is clear that you need an investment policy, you must now decide how many policies you need.

The answer to this question will depend on whether you want lifetime coverage or an investment plan. If you want life coverage on your insurance policy, you must plan for all your future responsibilities and you must also receive a payment for life. It is necessary to be absolutely sure of the value of human life in this situation. Once you have a clear idea of ​​the value of your human life, you can choose any insurance policy that gives you life coverage.

Otherwise, if you want to choose an investment plan, you will need to specify the objection to the investment, including the child’s education, retirement planning, etc. Once you have all the numbers in mind, you can choose any insurance investment plan.


Managing Your Insurance Portfolio


3) Select an insurance advisor

Insurance has been a complex personal financing to understand, not because it is too difficult to understand, but because of the poor quality of the insurance advice provided. Insurance is one of the best-selling financial products wrongfully among investors. The reason for not selling insurance is due to the fact that the insurance advisor is biased to his insurance recommendations, as he used to charge commissions in favor of these insurance products. Therefore, you must be absolutely certain that the insurance advisor you are consulting with is not predisposed to any insurance policy. Check their recommendation by asking for comparisons between insurance companies on various criteria. Understand why he recommends one insurance plan over another. And if you make claims that seem strange to you, feel free to delete them in writing or get confirmation from a company official.

Choosing the right advisor to recommend your financial product is critical to achieving your financial goals. When choosing any insurance product on the advice of a financial advisor, make sure that the advisor you are referring to is unbiased in their recommendations.

4) Review your insurance policies regularly:

You should regularly keep track of all your income and expenses, as well as all your investments. You should also keep track of all your insurance policies. Keep track of all your goals. For example, if you choose life insurance, you will need to closely monitor your financial liabilities and obligations. If at any time you believe that you will not reach your goals or objectives, you should review your current insurance policy. You may need to purchase additional coverage if there is an upward revision checked and then cover your current life. The solution to this problem is to choose a slightly taller cover at first; Since pure risk plans are relatively inexpensive, they will not be very expensive.

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