The most certain thing about life is change and change is risky; which makes every stage of life a risk. Whether you are walking up a path to work, or fulfilling a dream of travelling to a new country, or driving a new car along a scenic highway, or getting blood work done; you are at a risk. And the only way to minimize every risk you may encounter is through the security of insurance.
What is insurance?
Insurance is an agreement between a company and an individual where the company provides financial compensation for loss, damage, illness, or death to the individual in return for a specified premium paid on a periodic basis.
Why is insurance essential?
Insurance is essential to provide financial security and protection during an unexpected situation, Considering the innumerable risks and the rising costs to cover these risks, it is advisable to get insurance to lessen the financial burden.
Which types of insurances should one get?
Insurances are of many types, however the most common are:
Life Insurance
An insurance that offers financial compensation to the insured individual in case of disability or to the family members in case of death of the insured individual. The most common ones are term insurance and whole insurance. A term insurance covers an insured person for a specific length of time while a whole insurance coverage is for the entire life of an insured person.
Health Insurance
An insurance that will help tide over the expenses related to medical treatment and hospitalization in case of a health scare. It is advisable to opt for specific health plans like cancer insurance plan in case of a family history of that disease to cover the financial worry.
Vehicle Insurance
An insurance also known as auto insurance, car insurance, and motor insurance; protects vehicles from financial loss in case of accidents, damage, theft or natural disaster like fire, floods or landslides.
Travel Insurance
An insurance that compensates for any financial liabilities arising out of medical and non-medical emergencies such as cancellation of flights, hotel accommodation, theft, etc. during travel within or outside the country.
Property Insurance
An insurance also called home insurance, that provides coverage against risks to property due to man-made damage, theft or natural calamities like fire, weather, earthquake, etc. It not only offers financial protection to the property, but also the valuables inside.
Others
Less common types of insurance plans include bond insurance, accidental death insurance, loan protection insurance, casualty insurance, flight insurance, deposit insurance (FDIC), kids’ insurance, and many others.
How to buy Insurance?
It is simple to buy insurance in India. First understand what is needed, get the details of all the available options. Compare the options and pick the right plan. Pay the premium and be secure.
It is advisable to have insurance, especially life insurance and health insurance. While vehicle insurance is mandatory in India, others are not. Most people prefer to pay a little bit of money every month and stay worry-free while a majority they have nothing to worry about. The most sensible thing to do is to protect yourself without paranoia, pick the right insurance instruments as per your lifestyle and enjoy with a relaxed, peace of mind.
Until next time,
~ Heena
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