Types of Insurance Policies Everyone Should Have

 

In India, there are different types of insurance policies that serve different purposes. So, read on to know the must-have insurance policies that can help you secure your finances.

Insurance policies provide financial protection against life uncertainties such as sudden death, accident loss of property, serious illness, etc. However, insurance comes with a cost. And, while you cannot insure everything, there are certain things that you must get covered, especially those that will have a high financial impact on your life and the lives of your dependent family members.

In India, the insurance sector, over the years, has evolved significantly. Today, there are different types of insurance policies that you can consider buying. Right from protecting your home to getting protection against travel mishaps, there is a policy for everyone. So, if you are not sure what insurance to buy? The following types of policies are a must-have for all.

Health Insurance

Life in a city has become extremely stressful, and the pollution levels have increased beyond the safety levels. Also, there has been a steep rise in medical costs. In such a scenario, a health insurance policy is a must-have. It helps you get financial protection against medical emergencies in the family. With a robust healthcare plan, you can have peace of mind knowing that you can provide the best medical care to your beloved without worrying about the high treatment cost.

Experts recommend buying good health insurance with an adequate sum assured to have sufficient coverage for various hospitalisation-related expenses. As there is a myriad of plans available in the market, ensure that you compare the policies carefully and choose the one that offers maximum protection and suits your requirements.

Life Insurance Policy

While a health insurance policy covers the treatment expenses, a life insurance policy helps you secure your family’s financial future in your absence. Today, there are different types of life insurance policies that offer several benefits. There are some plans like the Unit Linked Insurance Plan that gives you the dual advantage of insurance protection and investment.

If you are looking for a simple life insurance policy that provides maximum protection at an affordable cost, it is best to invest in a term life insurance policy. Under this policy, the insurance company pays a lump sum amount to the family in the event of your unfortunate demise before the end of the policy term.

Homeowners Insurance

A home is one of the most valuable assets you may own, and you would surely want to keep it protected from unexpected events like damage due to natural catastrophe, theft, burglary, etc. So, as a homeowner, you must invest in a home insurance policy. It helps you get protection against the damage to the house and the personal belongings you may have inside the home. Additionally, if you wish to avail of a home loan, the lender may require you to purchase a home owner’s insurance before approving the loan.

Cancer Insurance 

Although most health insurance policies will cover the cancer treatment expenses as per the terms and conditions, in most cases, the coverage may not be enough to cover the full cost. Typically, the cancer treatment can go up to 5 lakhs or more, and in such a situation, a standalone cancer policy will be useful to cover the full cost. Typically, in cancer insurance, the insurers pay a lump sum amount as soon as you are diagnosed with the disease. You can use the amount to cover the treatment cost as well as to meet your other expenses.

Motor Insurance

If you own a car or bike, it is mandatory to own a car or bike insurance as per law. Driving without valid insurance can attract a hefty penalty. Apart from complying with the legal requirement, motor insurance is crucial to get protection against the financial losses you may incur if you get involved in an accident. Typically, the insurers in India offer two types of motor insurance – third-party insurance and comprehensive insurance. Make sure that you assess your requirements well and choose the right kind of policy.

Now that you know the must-have insurance policies make sure that you invest in one and get full financial protection against liabilities.