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Rajendra Nigam (name changed), 24, started getting pesky calls from insurance sales people as soon as he landed his maiden job as a sales executive after he completed his post graduation in business management. With an educational loan to take care of, buying an insurance cover was the last thing on his to-do-list. Making a mark in his career was the top-most priority for him and paying back the educational loan before everything else came in a close second.

You can't blame Nigam, though. Young executives are bogged down by too many expenses at the beginning of their career. Most of them are forced to move to new cities which means that they have to shell out money for an independent accommodation. Then, there are the EMIs for that ubiquitous educational loan which kick in soon after they secure a job. And with pay cheques that have been punctured by the economic slowdown, they are hardly left with anything to save or invest. No wonder then that insurance is not on their mind at all.

However, the trouble is that young executives who are always on the move can't afford to be casual about obtaining insurance covers - life insurance, personal accident, health insurance and so on. For example, a major accident can confine the youngster to bed for a long period. Then, there are the medical bills that he or his family may have to foot. Worse still, if his parents are even partially financially dependent on him, they may land in further trouble, especially with an outstanding education loan. Health Insurance: This is one cover nobody can say no to. Even a small ailment that requires hospital treatment can make you poorer beyond your imagination. When it comes to young professionals, the usual excuses are 'I am healthy,' 'I don't have any "major" bad habits... therefore, I am not susceptible to infections.' Then there are others who think that the group health cover offered by their employers is more than enough to meet an emergency. But these excuses do not hold up to scrutiny at all.

"The terms of coverage change from one policy to another. When a person moves from one employer to another, he may not enjoy the same coverage with a new employer," says TA Ramalingam, head underwriting, Bajaj Allianz General Insurance Company. For example, large companies buy a group medical insurance policy that also offers maternity benefit. If an employee moves from the large company to a smaller one that looks at insurance as a cost item than an investment in human resources, she may find later that the company may not have subscribed to maternity cover to save costs. Typically, one does not check the terms and conditions of insurance coverage at the time of joining a new organisation.

To be on the safer side, take a personal medical insurance policy. You can start with a small sum assured of Rs 1 lakh (though we think at least Rs 3 lakh is desirable) and gradually hike the sum assured. Insurance companies allow a small and steady increase in the sum assured over a long period of time. This ensures that you are always insured, irrespective of employment.

Source: The Economic Times