Learning from Covid-19
Sorry for using Covid-19 – yes of course it is a click bait. I was going through many articles, vlogs, etc. saying “learning from Covid-19” and found the same…
- You need term insurance – now that’s amusing.
- You need medical insurance
- Even if your company gives you medical insurance, you should have your own …
- You need X number of months expenses as Emergency funding…
Now did you need a virus to tell you how much term insurance you need, for how long, how to buy….ditto for Medical insurance.
When there is a panic people say you require 12 months funding – this is amusing because the number has gone up from 3 months to 12 months. Sadly there is electronic footprint to see the claims that the same people made a few months ago!
So this is just time pass…you should anyway know these things.
Let’s get to the facts….
we have no time-frame about when the Vaccine will be found. THIS IS THE TRUTH.
In the markets you find all kinds of nonsense…like
the view that the Virus will be killed by a vaccine soon and hey Presto! the world will be back to normal.
the pessimists believe that we are at the end of civilisation
the truth of course is somewhere in between…
What are the real learning from this…
- take care of your health
- do a lot of exercise
- eat less
once you do this charges are you will find the strength to fight any virus is fine!
Nitu
Don’t you think things evolve or degrade as per situation. Right now everyone in panic. No one knows where they can catch the virus , even if one don’t go out virus can come home with anyone or anything (Delhi Pizza Delivery Case).
So this time everyone will try to make sure that they and family safe , be it from insurance or emergency fund because everyone in fear and no guarantee if the job is going to be there after 3 months, 6 months or not..even thought many company won’t let go as “goodwill” gesture right now but down the line they will for any reason except Covid-19.
3 Months of emergency becoming 12 month is very normal because the situation.Or taking medical insurance or term insurance.
If after 6 months no impact of economy , no job loss, plenty of jobs available then may come down to again because people will “assume” that they can have cash flow.
3 Months, 6 Months, 24 Month, Term insurance based on income or expenses , 12 time, 30 times , or 50 times of retirement its all assumption based thumb rule and it evolves/changes.
Grain of Sand was smallest then comes the Atom and they comes to proton, neutrons an they also made of something and in future people may find smallest than that also. So things evolve
The only thing one can do is look at their own financial and work based on that and if they have no clue then use the thumb rules.
Yes CPA works great if:-
1. One have ability to find trustworthy CPA
2. Who does not work on fund commission ,
2. Who is taking client whose net worth is negative and may struggle to pay fee
3 People who do not have big income
So until then this kind of thumb rule going to play important role.