Starting your investment journey can be an exciting time, especially if you have a good income and are able to save regularly. However, before you dive into investing, it’s important to consider insuring yourself. Emergencies like accidents, serious illnesses, and death can be rare but when they happen, they can have a significant financial and emotional impact. That’s why taking the first step in your investment journey by ensuring that you have adequate insurance coverage is critical.

Health insurance is essential for covering medical emergencies. When choosing a health insurance policy, look for one that covers major expenses and provides complete coverage. We will discuss the best practices for purchasing health insurance in a later discussion.

If you have dependents, it’s important to consider life insurance. Life insurance helps secure their financial future in the event of your death. When buying life insurance, consider a term insurance policy, as it provides maximum coverage for the premium paid.

It’s important to note that insurance is not an investment. Avoid insurance products that offer money-back or investment options, as insurance is a poor investment product. Consider insurance as an expense and keep it separate from your investment portfolio.

For health insurance, make sure to cover extreme events such as accidents and critical care, and avoid covering minor expenses, as these insurance policies can become very expensive.

Once you have adequate insurance coverage in place, you can start your investment journey with peace of mind. In our later discussions, we will discuss different investment options and strategies.