Types of Insurance

You are a hardworking person, you maintain a healthy lifestyle, drive safely on the roads, and care for your loved ones abundantly. You are doing everything to make sure you are living the ideal life. However, have you thought of the future? Have you ever thought of unforeseen events that could crop up and adversely affect you or your loved ones? To continue leading this life, you should most certainly be prepared for any eventuality. This can be achieved by getting insurance for what you need.

Nowadays, you can apply for insurance for almost anything in the world. However, there are certain types that are absolutely essential for every adult and typically offer coverage to secure your life, family members, income, and possessions.

The requirement and the type of insurance that one opts for can differ from person to person. Among the various kinds, life insurance and health insurance are vital for everyone- adults and children alike.

Why is Life Insurance indispensable?

When you apply for life insurance,you can be assured that your folks will be financially secure even if you die. The life insurance amount serves as the lost income when the earning member of the house passes away. It also helps in recovering liabilities of a person after his/her demise so that the family does not face any issues. If something unfortunate happens to you, your family will continue to function well without coming to a standstill. Moreover, you can also enjoy tax benefits with a life insurance policy under Section 80C, 80CC and 80CCE of the Income Tax Act.

Another significant type of insurance is a variant of life insurance called term insurance. Here,you can obtain life coverage for a fixed period. The best part about term insurance is that you will get maximum life protection for the lowest premium amounts over a fixed term. With life and term insurances, you can obtain additional coverage with the help of riders. These typically cover accidents, injuries, temporary and permanent disabilities, illnesses, etc. You will have to pay an additional premium for these riders. By paying a small extra sum of money, you and your near and dear ones can enjoy an all-inclusive protection.

Why is Health Insurance crucial?

We have all been hearing since childhood that ‘health is wealth’ and we know how true that is. Good health enables us to work, enjoy, and just live life peacefully. Keeping this in mind, one definitely needs to buy a reliable health insurance policy. Medical insurance takes care of high medical costs that one may incur to treat any form of illness. It also reimburses the enormous bills that are incurred during hospitalisation. Many employers in the country understand the significance of health insurance, and hence, they offer basic coverage so that their employees need not worry about making sudden financial arrangements for health care.

With proper medical insurance, one does not have to excessively spend one’s own money to get treated.

Why is insurance vital for your vehicle?

Apart from life and health insurances, one needs to consider a few other crucial forms of insurance too. If you are a car owner, you should mandatorily apply for auto insurance. As per the rules of the country, you can use a car on the road, only if you have valid insurance. It is highly essential as it protects you, your vehicle, and third parties, if any, when there is an accident or any kind of damage. The premiums for car insurance are reasonable and they can be paid at different intervals. Without insurance, you would be forced to pay the expenses of your car repairs and for damages caused to the third party involved in the accident. Moreover, if you are legally liable for any motor accident and if your policy has liability coverage, you will not be held responsible.

The same applies to scooters and motorcycles. To ride a two-wheeler on the road, you should compulsorily carry two-wheeler insurance policy with you. There are multiple insurers that offer two-wheeler insurance at economical prices. They help you reduce your financial burden in case you meet with an accident while riding.

Significance of Property Insurance

When you own a home with or without a home loan, you should take property insurance. In India, insurers offer home insurance for giving coverage on your home structure or the contents within. Whether your home gets affected by natural calamities, terrorism, theft, or fire, your property insurance policy will reimburse your costs.

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