7 Insurance Policies Everyone Should Have
Hello everyone and welcome to our new blog article. Today we come up with new topic i.e., 7 essential insurance policies that everyone should have.
Why one should take insurance policies? Insurance policies protect what is most important to us. We can’t stop disasters from happening, but an insurance policy can protect you from the hazards of normal life including accidents, life-threatening illnesses, etc. best insurance advisor in lucknow
Protecting your most important assets is an important step in creating a solid personal financial plan, and the right insurance policies will go a long way toward helping you safeguard your earning power and your possessions.
Today we will discuss seven policies in brief that everyone should have: -
Accidental Insurance
Critical Illness Insurance
Permanent Disability Insurance
Home Insurance
Life Insurance:
Life insurance is a must have insurance policy especially for those who are primary bread earner and have financial liabilities on them.
Life insurance can give you lasting peace of mind in terms of the assurance that you have provided a legacy to your loved ones. A good life insurance provides a good cover and also guarantees a secure financial future for the insured's family.
It is compulsory to have a life insurance policy with an adequate sum insured so that it can replace the lost income and function as a financial buffer for his family in the event of his/her demise.
So, think about how much you earn each year and purchase a policy to replace that income in the event of your untimely demise.
Health Insurance:
We all must have experienced that even a simple visit to the family doctor can result in a hefty bill. Health insurance ensures that the undergoing long term treatment does not throw a family into dire financial straits.
By paying a small amount of premium to the insurer, you can take a cover under a comprehensive health insurance plan. This will shield your savings from sudden shocks of medical treatments.
The soaring cost of medical care is reason enough to make Health insurance a necessity. It is strongly recommended to get a health insurance policy at an early age as people are healthier in their younger years and the premium rates are lower as well.
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Accidental Insurance:
An accident does not come knocking at the door. It can happen anytime, anywhere and may result in minor to serious injuries. An accidental insurance policy is designed keeping to offer some relief to the injured person or a dependent. Accident insurance policies have pay-outs that vary, depending on the severity of the injuries. Your accident coverage will take care of expenses not covered by your medical plan.
According to a survey in year 2021, there are approximately 4.12 lakh road accidents have been reported in the country, claiming 1,53,972 people lost their lives in road accidents whereas 3,84,448 people faced serious injuries. Unfortunately, the worst affected age group in Road accidents is 25-45 years, which accounts for about 67 percent of total accidental deaths.
That is why it is necessary to buy an Accidental Insurance policy. Accidental insurance is a form of insurance policy that offers a pay-out when people experience injury or death due to an accident.
Accident insurance policy pays a benefit directly to you or your beneficiaries in case of death resulting from a covered accident. A policyholder can also claim a compensation for various kinds of disability. There may be a loss of both hand or feet, one hand or one foot, or one hand or foot and an eye.
**In 2022, there were 1,55,622 deaths due to road accidents were registered in India and 59.7 per cent of fatalities occurred due to over-speeding.
Critical illness Insurance:
Since medical inflation is consistently on the rise, a basic health insurance plan may not suffice to ensure sufficient medical coverage for you. This is why it is necessary to purchase a critical illness insurance policy.
A Critical Illness Insurance policy is a special health insurance policy that covers you against life-threatening critical diseases that require an expensive medical treatment such as cancer, liver disease, paralysis, heart attack, renal failure etc.
According to a survey, the cancer burden in India has more than doubled over the last 26 years. On an average, more than 1,300 Indians succumb to the deadly disease every day. Smoking, alcohol, lifestyle and poor dietary habits are some of the major causes.
Similarly, liver disease is the tenth most common cause of death in India, with around 10 lakh patients being diagnosed with liver cirrhosis every year. Critical illness cover helps to support you and your loved ones financially if you've been diagnosed with a specific condition.
This Policy provides a lump sum coverage amount that can cover exorbitant medical expenses for critical illnesses covered under the insurance policy.
There are also some health insurance plans that provide critical illness rider cover on payment of additional premium that helps the insured pay for exorbitant hospitalization and treatment expenses.
Permanent Disability Insurance:
Permanent disabilities render the disabled person unable to work, and may also not be able to perform their daily tasks. It includes loss of both hands and feet, loss of sight, loss of speech qualifies for full benefits under total and permanent disability insurance. Here comes a role of Permanent Disability Insurance.
Permanent Disability insurance can replace a portion of your lost income if you are unable to work due to sickness or injury.
Permanent Disability insurance offers financial security to you and your loved ones if you are incapable of earning due to an accident. It helps you meet the basic needs as well as assist you to maintain a standard lifestyle. The claim amount is generally a fixed percentage of the policyholder's average wage.
The minimum and maximum age of entrance are 18 years and 70 years, respectively, although the minimum and maximum sum covered differ from insurer to insurer.
Home Insurance:
Buying a house is the largest expense that a person makes during his lifetime. Having a home insurance policy provides you financial protection in case your house is damaged or destroyed in natural disasters like floods, earthquakes etc.
A standard house insurance plan also covers for loss and damage caused to your property due to a fire accident, theft and burglary.
The home insurance policy act as a financial cushion and help you rebuild your house without having to dig into your savings. A Home Insurance policy is one of the most affordable insurance policies that you must have.
This policy not only protects the house from physical damage, it also provides coverage for items inside the house. So, insure your home against every kind of natural and man-made calamities today to assure yourself and your family of a secured future.
Motor Insurance
A motor insurance policy covers the owner from any financial losses incurred from an unforeseen circumstance, like an accident, natural disaster, theft, etc.
Any damages to the insured vehicle, the policy holder will be covered by an insurance provider. i.e., whether you need to send it for repairs after an accident or your car has been stolen.
Motor insurance not only compensates for the damages suffered by your vehicle but also takes of liabilities due to losses suffered by a third-party. A Third-party motor insurance provides coverage against liabilities arising due to damages suffered by a third party because of your vehicle.
In other words, it provides compensation to the third-party because of injury/death caused by your vehicle. Choosing the right insurance cover is a most important step in securing your motor vehicle and yourself too. It protects you against any unwanted financial liability and provides financial security. To avail of the motor insurance benefits, the premiums need to be paid timely.
So, get your motor insurance today and have that peace of mind for a lifetime.
Conclusion: -
That’s all! At the end I would like to suggest you that before making a purchase determine your goals, research about the available policies, determine how much insurance you need to meet your goals over time compare features and prices and speak with your financial planner to ensure the plan.
Always remember, working with a financial professional can help make this whole process easier. A financial professional can help explain the differences between types of policies, help you calculate the amount you need, and present potential options that may best suit your needs.
Thank-you!
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