Five Must Have Insurance Plans While Doing Your Financial Planning!
Life is full of adventures and uncertainties. Things do not always work as we want them to, but there is still a scope of improvement. We can minimise the suffering and financial loss due to unprecedented situations by opting the right insurance policy.
Let us discuss five type of insurance policies which are essential for every individual these days and can help to cover your financial losses due to uncertainties of life:
|Life Insurance||Householders Insurance|
|TPL (Third Party Policy)|
Critical Illness Insurance
- Life Insurance: Life Insurance is none less than a necessary tool these days. It gives you financial as well as mental support that your family won’t be dependent on anyone financially after you. In India, there are still so many people who want to buy life insurance, but due to lack of awareness, they fail to buy the right life insurance as per their requirement. Therefore, you should purchase such life insurance which can cover your family’s expenses and let them be financially stable. Also, you should not mix life insurance with investment because then, it makes the plan expensive.
- Home Insurance: Also known as Householder Insurance Policy, this form of insurance protects damage or losses affecting your belongings caused by fire, theft, earthquake, flood amongst others. However, the exact coverage terms differ from policy to policy. An All-risk home insurance offers coverage even for your plates, jewellery, glasses and bicycle. It also covers loss of baggage while travelling, loss caused by a personal accident and third-party claims caused due to an insured event. Therefore, a householder policy is a useful insurance product suitable for everyone.
- Health Insurance: A Health Insurance Policy is an agreement between policyholder and insurance company to bear all the expenses occurring due to health issues and in return of that policyholder needs to pay a premium amount for the policy. Unforeseen health issues can kill all your savings in no matter of time; hence it is highly advised to have a Health Insurance Policy in your financial kitty so that you can be prepared for unanticipated illness. It is advised that you should not wait for the unexpected situation instead buy health insurance with immediate effect and safe your hard-earned money from hospital bills.
- Critical Illness Insurance: As the name suggests Critical Illness Insurance covers all the major end-stage diseases like Cancer, Brain Surgery, Major Heart Surgeries, Blindness, COMA, Kidney Failure etc. It is different from Health Insurance as it covers terminal illness and gives you a round sum amount if you have been diagnosed with any of the covered diseases. Whereas in the case of Health Insurance, you get reimbursement for your OPD and medical expenses during hospitalisation and that too for limited ailments.
- Third-Party Policy (TPL): As per the Motor Vehicles Act 1988, it is mandatory for every vehicle to have third party insurance. TPL (Third Party Policy) covers you from the legal ramifications of an accident which has been foster by you. As per this act, a motor vehicle in a public place is probably a fatal object, and a third-party insurer must cover the risk caused by it. As per “Road to Safety” report issued by NDTV in association with Diageo, on an average 1214 road crashes occur every day in India, out of which 16 are major accidents that cause death. One more survey reveals that on every 4th minute, someone in India dies because of a road accident. Also, in 2013, 1,37,000 people were killed in road accidents alone, that is more than the number of people killed in all our wars put together. These numbers are really soul-crushing and, we must be prepared for such tragedies by purchasing a Third-Party Policy. It can at least give you coverage from financial loss due to any road accidents.
We all have now entered in the modern era, and everything around us is becoming better day by day, right from our gadgets which we use daily like mobile phones, refrigerator, washing machine etc. to our way of living.
It’s time for us to reshape our financial planning also by opting essential insurances. Visit BimaKaro.in for expert advice and get the best quotes on different insurance policies.