4 Types of Insurance Everyone Needs
Unpredictable and unexpected, life constantly throws different situations at us. While we cannot prevent these situations, we can protect ourselves and our loved ones financially by giving ourselves cover against such disasters.
Insurance is a legal contract between an insurer, an insurance company, and a policyholder. Wherein the insurer indemnifies the policyholder against financial loss from specific situations for a premium paid by the insured.
While multiple insurance policies are on the market today, identifying and purchasing the right one that fits your and your family’s requirements is a must.
Most experts suggest four types of insurance that most people consider a must for everyone: life, health, home, and motor. In India, insurance is bifurcated into two, life insurance and general insurance. Health, home, and motor insurance come under the general insurance category.
Must See: 7 Vital Insurance Types You Really Can’t Afford to Skip Buying
Life Insurance
If you have a family and loved ones who depend on you financially, then life insurance is a must to keep providing for them in the event of an untimely demise.
Life insurance usually covers the policyholder’s life with a substantial sum of money in case of premature demise. It provides the nominee with an assured sum of money in exchange for a premium paid by the insured during their living years. It is a legally binding document.
Health Insurance
Health insurance is an official binding contract between the policyholder and the insurance company wherein the insured receives financial coverage against any medical emergency from the insurer.
Other than life insurance policies, these plans are one of the most important today, keeping in mind the rising medical expenses.
With a wide array of policies to choose from, be it individual health care policies, family health insurance, maternity insurance, or senior citizen policies, to name a few, these plans cover the expenses of treatment meted towards injury or any illness.
Home Insurance
Home or property insurance helps you protect and financially cover your building or home structure and valuables against unforeseen damage or destruction. Usually, these unexpected damages include natural disasters such as storms, tornadoes, earthquakes, floods, etc., or manufactured ones such as burglaries, fire, explosions, etc.
One of the most precious investments one makes in life, your home, and its articles, from jewellery to gadgets, certainly require protection. Some examples of home insurance that you can opt for are:
- Fire insurance
- Natural calamities’ insurance
- Building or structure insurance
- Burglary or theft insurance.
- Public liability insurance
Motor Insurance
Motor insurance covers the vehicle owner against any damage, theft, vandalism, or accidents to their vehicle. According to the Indian Motor Vehicle Act, third-party motor vehicle insurance is compulsory in India.
Conclusion
Each of the above insurance plans comes with the idea of protecting and covering one and their loved ones against a specific risk.
Hence, if you haven’t bought one yet, you should keep in mind the uncertainties that life has to offer today, more so than ever, as to handle these scenarios effectively, the protection of an insurance cover is a must.
