Last few months have been challenging for each one of us. Pandemic has taken physical, mental and financial toll on each and every individual. An earning member of the family affected by COVID-19 has not only disturbed the regular income of the household for few months but also families where multiple members were affected by COVID-19 incurred medical expenses running into lakhs of rupees that either completely eroded savings or led to high debt.
This Pandemic has shown us the importance of having / building emergency fund which would have been very useful in situation of uncertain inflows from salary, business and/or profession along with appropriate amount of Health Insurance Cover.
There is no right or wrong formula for calculating the sufficient insurance cover of one person and/or his family because what may seem right for one family may not be sufficient for other.
Analyzing every individual’s situation independent and calculating the Insurance & Emergency Fund needs seems to be right solution in today’s testing time. Insurance plays a major role or way of immediate finance in time of need with minimal investment along with Emergency Fund.
Safety and not returns is the key to build sufficient emergency fund and keep aside some amount handy either in (Nationalized) Bank FD and / or Mutual Fund (Debt) Scheme for easy liquidity in time of need.
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