What is Responsibility insurance?

Responsibility insurance is something every person needs irrespective of age, sex, profession or medical record. This kind of insurance planning is as important as any other basic planning in life as it covers most of what we usually can a person’s basic responsibilities. We all have responsibilities of different nature and they keep changing from time to time as we grow up but seldom do they stop travelling along with us in this journey.

Why is it important?

When these responsibilities are never going to end, no matter however old you get, why should the planning stop? And why should planning for your responsibilities in life be taken for granted? Responsibility planning is all about planning for expenses that you can’t see but they are always there and will be there. At any given interval in our timeline, there will expenses and these expenses are what we call responsibility insurance. Responsibility insurance is significantly different from liability insurance because the latter is meant to cover expenses that we see coming and is visible to us but responsibility insurance covers expenses that we are very much part of our lives but we fail to realise or acknowledge their existence.

Case study

Liabilities can pop up from anywhere and businessmen are vulnerable to charges from a range of liabilities. All these liabilities can subject the assets of the businessman to substantial claims. Protecting the assets is a very important task and every business man should have in place a well- structured asset protection liability insurance. The following are few important types of liability insurance.

Being a responsible adult, you might have to pay your children’s school fees right from the age of 3 or 4, which in today’s education scenario will cost you nearly a lakh for each of the children depending on how many you have. From that point onwards, you will have to pay their tuition fees every year after that. All this while, their health care should also be taken care of.

Your children’s education for 12+ years will be followed by their under graduation for 3 -5 years depending on their course which will cost you at least 10 lakhs. Few of them settle down with a job and the rest of them opt for higher studies. In this case, as a parent, you take it upon yourself to bear that expense also which will cost you around 20-30 lakhs. Just when you thought your responsibilities are over, your child might want to set up a business on his/her own and will want your monetary support. Although Technopreneurship insurance will fund their company, only you as a parent, have the eligibility to apply for it. And this phase of your life will cost you more than 30 Lakhs.

All this put together will cost you nearly 70-80 lakhs which you’d have never realised if not for the awareness through responsibility insurance. This insurance will show you ways to invest in select productive and fertile areas and get back good returns. This insurance covers pretty much every aspect of your family’s life in various phases of life and gives you the moral support you need and the financial support your family needs after your demise.

This way, your responsibilities towards your family will not cease and can never be transferred to somebody else. It is your duty to fulfil these responsibilities and also secure their family’s welfare even in case of your absence. Taru Financial Services will draw out the best investment plans and insurance policies with your family’s welfare at heart and make the best out of your investment.