Insurance is a highly misunderstood product and it's often bought and sold for the wrong reasons. At the same time it's a very important part of your life and you must know certain ground rules for making the right decisions in this year. Many of us consider insurance just another investment for tax saving. Our day-to-day life is full of unpredictable risks for example loss of life, loss of income, critical illness, disability etc. Insurance planning means figuring out adequate cover against "insurable risks" and getting the maximum out of the premium you pay. Tax exemption is just another aspect of it.

Having the right insurance cover gives you peace of mind as it provides financial support in case of contingencies.

Insurance is for the earning member of the family
Life insurance is a replacement for your income. When your income ceases or falls insufficient either due to death, illness, retirement or a major goal such as children's education or marriage, insurance fills in the gap. On your death, the money received from term insurance policies will provide a corpus with which the family can pay off debts, convert dreams to reality and still lead a comfortable life. You must have seen cases of non-working mothers or non-earning family members getting insured. It goes against the fundamental principle of insurance.

Therefore it's important that the breadwinner covers the risks to his life and income, so that his family's quality of life is not compromised after he is gone.