It is April: Time to Revisit your Finances

It is time for all of us to take stock of our finances and to review our portfolio. Managing money does not come easy and it is prudent to create a diversified portfolio without putting all your eggs in one basket. Given below are some simple tips on how to manage your finances and where to invest.

The first step is to review your existing portfolio. This is an essential step as it helps you decide which of your allocations have performed, have outperformed or have lagged behind. It is also important to understand your financial goals as it is a changing goalpost which is aligned to your needs, which again changes over time.

Much has been written about how to balance your equity (shares and mutual funds) and debt (bonds etc.) instruments; your allocation to buy gold – physical or virtual; real estate investments (land, plots, apartments) etc. However, the area that most of us neglect is Insurance.

Be it Life or Health Insurance, India has one of the lowest penetrations when compared to other large economies. India’s insurance penetration stands at 4.2% of GDP as compared to the global average of 7% and that is an alarming situation.

HEALTH INSURANCE is a moving target which is again aligned to your needs. It is wise to revisit your insurance cover, add the amount you need to cover additional responsibilities and get the extra cover. It needs to be reviewed periodically. With marriage, additional members in the family and with growing years, your HEALTH INSURANCE requirements will change. With growing medical costs, medical inflation and an increased risk of lifestyle diseases, it is but prudent to have adequate health insurance cover. The most convenient way to achieve this is by converting your health policy into a family floater and increasing the cover. This ensures continuity of the policy, and you don’t miss out on any benefits.

Buying HEALTH INSURANCE also has financial benefits like tax exemptions. You can claim tax deduction of up to ₹ 1 lakh (conditions apply) under Section 80D of the Income Tax Act, 1961 on the premium paid towards a policy. You can claim deductions for your own policy or that of your parents, spouse or children. This can help you reduce your overall tax liability.

Given the benefits of HEALTH INSURANCE, it should be an integral part of your financial portfolio. For more details, click on https://www.starhealth.in/ and access the widest range of health insurance plans from India’s first Standalone Health Insurance Company.