Explainer
Your Company Gives You Health Insurance. Is That Enough?
You got your first job. You got your salary. And you got health insurance as part of the package. So, why spend your own money on another policy?
Because your job may not always be there. And neither may your company’s health cover.
For young professionals, employer-provided health insurance can feel like one less financial responsibility. After all, you’re young, healthy and probably have other priorities—building an emergency fund, starting SIPs, paying off loans or saving for a home. Buying a separate health insurance policy may seem unnecessary.
But there is a simple reason to consider it: your employer’s health insurance is linked to your employment, while a personal policy stays with you.
Your job can change. Your medical needs won’t wait.
You could switch jobs, take a career break, become a freelancer or start your own business. In all these situations, the health cover you’ve been relying on may change or disappear.
And medical emergencies don’t exactly wait for the perfect time.
An unexpected hospitalisation can easily run into several lakh rupees. If your insurance isn’t enough to cover the expense, the money has to come from somewhere. It could mean dipping into your emergency fund, selling investments or even borrowing money.
That is where health insurance becomes more than just a healthcare product. It becomes a personal-finance tool that protects the money you’re trying to build.
“But I’m young and healthy.”
That’s actually one of the biggest reasons to think about insurance early.
When you’re young and relatively healthy, getting a policy may be easier and the premium can be lower than it would be later in life, although pricing depends on the insurer, policy and your circumstances. More importantly, buying early means applicable waiting periods begin sooner.
You’re not buying health insurance because you expect to land in a hospital next month.
You’re buying it because you don’t know what could happen five or ten years from now.
And by then, your financial responsibilities could be much bigger. You might have a home loan, dependants, children or other long-term commitments. A large medical bill at that stage could hurt considerably more than it would today.
Your salary is not your only financial asset
Here’s another way to think about it.
Every month, you put money into investments. Your SIPs are building wealth. Your emergency fund is creating a cushion. You may be saving towards a home, a car or financial independence. Now imagine having to liquidate a chunk of those investments because of an unexpected medical expense.
The loss isn’t just the money you spend today. You also lose the future growth that money could have generated.
That’s why insurance and investing work together. Investments help you build wealth, while insurance can help protect that wealth from large, unexpected expenses.
But don’t buy more insurance than you need
Having personal insurance doesn’t mean you need to immediately buy an enormous policy.
As a young professional, you’re probably balancing multiple financial goals. Paying a large premium that strains your monthly budget doesn’t make sense either.
The idea is to find a level of cover that is adequate for your needs and affordable enough to maintain for years.
You can also review your cover as your income and responsibilities increase. What is sufficient when you’re 25 may not be sufficient when you’re 35.
A base health policy can also potentially be supplemented with a super top-up policy as your requirements grow, depending on the terms and conditions.
Don’t choose a policy just because it’s cheap
When you’re buying your own health insurance, the premium is only one part of the equation.
You also need to understand what the policy actually covers. Look at the sum insured, waiting periods, room-rent restrictions, co-payments, deductibles, exclusions and sub-limits. Also check the insurer’s hospital network and the process for making claims.
A policy that looks cheap today isn’t necessarily a good deal if you discover major restrictions when you actually need it.
The real value of insurance is not the premium you pay. It’s the financial protection you get when something goes wrong.
Your 20s are usually when you’re trying to build wealth – not spend it on unexpected hospital bills.
That’s why health insurance deserves a place alongside your emergency fund and investments.
Your company’s health cover protects you while you’re an employee. Your personal health insurance protects you even when your job changes.
You may never need to make a large claim.
But if you do, you’ll be glad that one medical emergency didn’t have to become a financial emergency too.
So don’t just ask: “Do I already have health insurance?”
Ask: “If I lose my job tomorrow, will I still be financially protected?”
Source: Economic Times
Explainer
Can Your Handbag Get You a Loan?
There was a time when buying a designer bag was fairly straightforward: you liked it, you could afford it, and you bought it.
Now, things are a little different.
People are booking appointments, joining waitlists and hunting down specific colours, materials and limited-edition pieces. There are collectors with entire rooms dedicated to their handbags. And increasingly, buyers aren’t looking at these bags only as fashion purchases; they are looking at what the bag could be worth years down the line.
That got me thinking: when did a handbag start looking like an investment?
The Numbers Are Making The Case
According to the Knight Frank Luxury Investment Index, handbags were the best-performing luxury collectible category in 2024, gaining 2.8%.
Economic Times also highlighted how certain luxury handbags can sell for significantly more in the resale market than their original retail price. One example cited was an Hermès Birkin 25, which retailed at around ₹10.2 lakh but was selling for roughly ₹18 lakh in the resale market.
That’s a pretty interesting premium for something that is technically still a handbag.
Forbes has been making a similar argument for years. Its research has looked at designer handbags particularly sought-after Hermès pieces as an alternative investment, comparing their appreciation with traditional luxury assets such as art.
Of course, that doesn’t mean your wardrobe is suddenly a stock portfolio. But it does show that something interesting is happening in the luxury market.
Scarcity Is Doing A Lot Of The work
The most valuable handbags aren’t necessarily the most expensive ones. They’re often the ones people can’t easily get.
Limited production, discontinued designs, rare colours and materials, celebrity associations and strong brand demand can all contribute to resale value.
And that explains the waitlists.
The scarcity itself becomes part of the product. If everyone could walk into a store tomorrow and buy the same bag, some of that exclusivity and potentially some of its resale appeal would disappear.
It’s the same basic idea we see with many collectibles: when supply is limited and demand stays strong, people are willing to pay more.
This Is Also Creating A New Kind Of Collector
There are serious collectors building entire portfolios of handbags. Some buy specific models because they believe they will hold their value. Others look for pieces that are rare or difficult to find.
And yes, there are people whose collections are large enough to require dedicated storage.
At that point, we’re moving beyond fashion. We’re talking about an asset that someone is deliberately acquiring, preserving and potentially reselling.
And Then There’s The Collateral Angle
Here’s where things get even more interesting.
In some markets, specialist lenders allow owners to borrow against valuable luxury handbags, using them as collateral. In simple terms, the bag is valued and the owner can potentially access a loan against that value.
But this is where one should draw the line between “valuable asset” and “investment.”
Not every designer bag will qualify. And not every bag will be appreciated. Brand, model, condition, authenticity, rarity and resale demand can all influence its value.
So, are designer bags actually investments?
Sometimes. But not every expensive handbag is an investment. A stock can generate dividends. A bond can generate interest. A property can generate rent. A handbag doesn’t do any of that.
Its investment potential comes from what someone else may be willing to pay for it later. And that makes the market much more dependent on trends, scarcity and consumer demand.
So yes, a ten lakh handbag could potentially become more valuable over time.
But that doesn’t mean spending ten lakh on a handbag is automatically a smart financial decision. The smarter way to look at it may be this: a designer bag can be a luxury purchase that happens to have investment potential, not an investment that happens to be a bag.
Explainer
Planning a Destination Wedding This Season? Do the Money Math First
Destination weddings are having a big moment. But before you book that beach resort or palace, there’s one thing worth checking first: Can your budget actually handle it? A 2026 report estimates the average destination wedding in India at around ₹58 lakh, with destination weddings expected to make up an even larger share of Indian weddings in the coming years. And that ₹58 lakh isn’t just a venue bill.
Your Guest List Is Your First Expense
Every additional guest can mean another room, meal, transfer, activity and possibly a flight.
So before deciding on the destination, decide how many people you’re actually willing to spend on.
A smaller guest list could leave you with more room in the budget for the things you genuinely care about without pushing your total spending higher.
The Destination Changes The Math
Goa, Udaipur, Jaipur or a luxury resort in the hills may look very different on Instagram and on the final bill.
You need to factor in:
- Venue and accommodation
- Food and beverages
- Guest travel
- Local transportation
- Décor and entertainment
- Photography and makeup
- Vendor travel and accommodation
And during the peak wedding season, higher demand can also mean higher prices.
If your dates are flexible, comparing peak-season and off-season prices could help bring the cost down.
Don’t Budget Only For The Wedding Day
A destination wedding often means paying for multiple days.
That means your budget needs to account for hotel nights, meals, transfers and all the little expenses that tend to appear once the wedding planning begins.
One useful approach is to create an all-in budget before paying any advance.
Not: Venue = ₹30 lakh
But: Wedding = venue + stay + travel + food + vendors + décor + contingency.
And Please Keep A Buffer
Wedding expenses have a habit of growing. An extra room here. A last-minute vendor there. Additional décor. A delayed flight.
Keep a separate contingency amount instead of putting every available rupee into the wedding. And if you’re considering wedding insurance, check exactly what the policy covers, its exclusions and claim limits before buying it.
The Money Checklist
Before booking that dream destination, ask:
- What’s our maximum budget?
- How many guests are we actually paying for?
- What’s the total travel and accommodation cost?
- Can changing the date reduce the cost?
- Have we included a contingency fund?
- Are we borrowing more than we’re comfortable repaying?
Because a beautiful wedding shouldn’t come with a financial hangover.
The goal isn’t to spend the most. It’s to celebrate without spending the next few years recovering from it.
Sources: Economic Times and 2026 wedding-industry estimates.
Disclaimer: Costs are indicative and may vary depending on the destination, guest count, wedding date and venue.
Explainer
A Simple Way to Manage Your Indian Property From Abroad
Living abroad but still owning a house, flat or other property in India?
Managing it from thousands of kilometres away can get tricky. Whether it is collecting rent, dealing with tenants, paying property tax or completing paperwork, you may not always be able to fly back to India whenever something needs to be done.
This is where a Power of Attorney (POA) can make things easier.
A POA is a legal document through which you authorise another person to act on your behalf. For an NRI, this could be a parent, sibling or another trusted person in India.
What can a POA help with?
The powers given to the person depend on what is written in the document.
For example, you could authorise someone to:
- Manage tenants and rental agreements
- Collect rent
- Pay property tax and other bills
- Deal with housing societies
- Handle routine property-related paperwork
- Sign certain documents on your behalf
In some cases, a POA can also authorise someone to represent you in a property sale or other transaction.
But there is an important distinction: giving someone a POA does not make them the owner of your property. They are simply authorised to act on your behalf within the powers given to them.
General POA vs Specific POA
Not all POAs give the same level of authority.
A General Power of Attorney can give the person broader powers, while a Specific or Special Power of Attorney limits them to particular tasks.
For example, if your brother only needs to manage your tenant and pay society charges, you may not need to give him the authority to sell or mortgage your property.
That is why the document should clearly mention what the person can do and what they cannot do.
Can you make a POA while living abroad?
Yes, an NRI does not necessarily have to travel to India just to execute a POA.
A POA executed outside India can be authenticated through authorities such as a Notary Public or an Indian Consul/Vice-Consul, depending on the circumstances. Once the document is brought to India, applicable stamp duty and other formalities may need to be completed. The exact process can vary depending on the state and the purpose of the POA.
So, before preparing one, it is worth checking the requirements applicable to the state where your property is located.
Selling your property? Be extra careful
Giving someone authority to handle routine property matters is one thing.
Giving them the authority to sell your property is a much bigger decision.
If a POA is being used for a sale, the document should clearly identify the property and specify the powers being given. Depending on the transaction and local requirements, registration and other documentation may also be necessary.
And remember: a POA itself does not transfer ownership. The actual property transaction and sale deed are still required to legally transfer the property.
The person you choose matters
A POA is ultimately about trust.
Choose someone who can keep track of rent, expenses, documents and other transactions on your behalf. It is also important to keep proper records and stay informed about what is being done with your property.
Most importantly, don’t give more power than necessary.
If you only need someone to manage your tenant, give them the authority to manage the tenant, not a blanket power over the property.
For NRIs, a carefully drafted POA can make managing property in India much simpler without requiring a trip back every time something needs to be done.
Source: MoneyControl
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