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4 Insurance Plans You Must Have

IndianMoney.com Research Team | Updated On Wednesday, March 07,2018, 12:27 PM
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4 Insurance Plans You Must Have

 

Insurance provides financial protection against unforeseen events. These are events which have a high financial impact on your life, as well as on the lives of your loved ones. In this article, we will explain 4 insurance covers that can ease financial stress in emergencies.

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4 Insurance Plans You Must Have

 

1. Term life insurance plans

 

You must avail a term life insurance plan, if you are the only breadwinner of the family. Term life insurance plans provide protection to your family, when you are not around. If you do not have term life insurance, it will be very difficult for your loved ones to meet rising living expenses in your absence.

Every working individual with dependents, must have term life insurance. On the untimely demise of the policyholder, the entire sum assured will be paid to the nominee. This money can be used for your loved ones to lead a quality life and pay off loans like a home loan.

You must avail a term life insurance plan, which suits your needs. As a thumb rule, you should buy a life cover which is 10-15 times your current annual income. If you have any outstanding loans, you should consider these loans while calculating the cover required.

 

SEE ALSO: 5 Blunders To Avoid While Availing Life Insurance
 
 

2. Health insurance plans

 

Nowadays, cost of medical treatment is rising rapidly. So it is very important to avail a health insurance plan. If you do not have health insurance, you will have to pay money out of your savings for costly hospitalization.

Now, most of the companies offer their employees group health insurance plans. But, you should not rely only on the health insurance provided by your employer. The sum assured under the group health plan, might not be sufficient for your medical needs and you will be left uninsured if you lose or change your job

The main purpose of availing a health insurance plan, is to cover all your medical expenses, without affecting your savings. Health insurance plans cover hospitalization expenses, pre-hospitalization and post-hospitalization charges. Hospitalization expenses are the expenses which are incurred during the period of hospitalization.

 

 3. Auto Insurance Plans

 

These days, every household has a car or a bike. So, it is important to avail motor insurance. In India, it is compulsory to avail third-party insurance or third-party liability cover when you buy a new vehicle.

Third-party insurance covers only the injuries to a third person (unrelated party) or damage to a third person's vehicle or property. So, it is better to go for a comprehensive auto insurance plan. Comprehensive auto insurance plans cover damage to your vehicle and injuries suffered by you. Comprehensive auto insurance policies, pay for your medical treatment in case of an accident.

 

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4. Home Insurance Plans

 

Most people in India would love to have their own house. It could be their biggest dream and investment. But, many citizens don't give importance to home insurance.

Home insurance is very important. Unpredictable events like natural disasters, fire, floods and earthquakes, can damage or destroy your house and property. If you have home insurance, an insurer will come to your rescue, during such difficult times.

Avail a householder’s package policy which covers the basic structure of your house and the contents. Your home is protected against fire and allied perils. The contents of your home, are protected against burglary and mechanical/electrical breakdown. Be Wise, Get Rich.

 

 

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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