Do's and don'ts of health and life insurance — expert weighs-in

In this episode of 'Smart Money', we discuss various factors to contemplate prior to acquiring a health or term insurance policy, the dos and don'ts of insurance, and the available insurance options for individuals with conditions like diabetes. Dheeraj Sehgal, Chief Distribution Officer at Bajaj Allianz Life, delves into the considerations one should bear in mind before choosing either a health or term insurance policy, as well as the guidelines for insurance. He also addresses the question of insurance options for those with conditions such as diabetes.

Sehgal emphasised two primary concerns that individuals often have regarding life insurance. Firstly, the worry of passing away prematurely and leaving behind financial responsibilities and commitments for their family. Secondly, the concern of living a long life and whether their savings will suffice to maintain their desired lifestyle for themselves and their family. Life insurance serves as a solution to alleviate both of these anxieties effectively.

Regarding the distinction between term insurance and whole life insurance, Sehgal explained that term insurance is straightforward life coverage. Individuals purchase term insurance policies with the intent of covering future financial obligations and responsibilities they may have toward their families. In the unfortunate event of the policyholder's passing, the family receives a lump sum payment to fulfill these future responsibilities, making it a practical choice for securing the family's financial well-being.