Insurance Planning for Salary Workers: Build a Safety Shield
Why insurance matters
Salary workers have limited buffers. A single medical event or accident can wipe out years of savings. Insurance transfers catastrophic risk to a small, predictable premium.
Core types (priority order)
- Medical insurance – covers large hospital costs
- Accident insurance – covers sudden injuries
- Critical illness – protects against major illness
- Life insurance – if you have dependents
How much to spend
A common guideline: 5–10% of annual income for basic protection.
A practical selection strategy
- Start with essential coverage, not fancy add‑ons
- Compare multiple providers
- Focus on claims clarity and exclusions
- Avoid over‑insuring
Common mistakes
- Buying complex products you don’t understand
- Treating insurance as “investment”
- Ignoring exclusions and waiting periods
Quick checklist
- Medical + accident covered
- Critical illness if budget allows
- Life insurance if dependents
- Review yearly as income changes
Disclaimer
This article is for general financial education and information only and does not constitute investment, insurance, tax, or legal advice. Please make decisions based on your situation and consult professionals if needed.