Namaskar,
As yet another phase of the lockdown rolls to an end, I hope you and your family are staying safe and staying indoors! We are here now, officially at the end of what would have been the summer holidays, wondering about what could be awaiting us in June. And now even with things slowly easing up little by little, with the government opens some sectors for businesses, we cannot assume that things will resume normally. Relaxing the lockdown, even if it is for certain sectors only, will certainly bring some challenges at our doorstep.
For the past two months now, every one of us has been trying to adapt to this new normal—staying confined to our houses, avoiding socialising, avoiding outdoor activities and basically giving up what we used to take for granted. Many self-employed people, business owners and others have had their avenue of earnings limited, causing them to dip into their emergency/contingency funds (if planned) or using their savings—something that may well go on for some time as things will take a while to normalise.
Being a business owner and a financial planner, I have had the chance to compile a checklist about daily (financial) planning that should hopefully help!
1. Reduce your lifestyle expenses.
2. Since many of you may be using your emergency funds or savings, you need to allocate a substantial amount to replenish these funds. If you do not have a specific emergency fund, please create one. And you can call me anytime if you need to figure things out and plan!
3. Check your medical insurance policies, and be sure you have an adequate one! If not, buy an extra policy to take care of all medical uncertainties. I will explain some points to look at while buying medical health insurance.
4. Same goes with life insurance. Carefully check if you are covered adequately to take care of your family’s future goals.
5. Do remember that once your business resumes, it might not be the same! Temper your expectations. Take baby steps. Think about it as an unavoidable reboot and move slowly with your plans. And remember, every day will bring some new learning.
As mentioned above, here’s a quick list of things to keep in mind when it comes to medical insurance:
- Adequate cover: The sum insured should be appropriate to your expected hospital costs. Understand the amount charged at various hospitals.
- Check for sublimits / capping on services: many policies have a ‘capping’ on certain services. For example, a capping of 2% per day on the per day hospital room rent. This means that if the sum insured is Rs 5 lakh, you will not be able to spend more than Rs 10,000 per day on your room. So try and avoid a cap if possible.
- Coverage of any day care hospital procedures.
- Co-payment clause: This means that you have to pay a certain percentage of the total bill.
- Pre-existing diseases should be covered. Check according to your requirement.
- And most importantly, check your family background for any hereditary illness and get them specifically covered.
The well-being of our families depends on planning all aspects of our life—physical, mental and emotional health, as well as wealth. So if you have not yet planned your finances, please do get in touch with a certified financial planner to understand the importance of financial planning.
And remember—it is always darkest before the dawn! And this challenging time in our lives will also pass soon! Now with the threat of Cyclone Nisarga looming over Maharashtra and Gujarat, it is more important than ever to listen to instructions, stay indoors and remain safe!
Stay strong, stay healthy and plan well, for a steady, prosperous and stress-free future!
Warm Regards
Anand Mhapralkar
Certified Financial Planner CM
+91 9820663784
Anant Wealth 