BASIC INSURANCE POLICIES EVERYONE SHOULD TAKE!
Once upon a time, Insurance was considered as a compensation to the family after the loss of life.
Whereas, now a days, insurance is covered for so many things that we face or use in our life.
A person should have the following insurance covers to remain safe in life. Instead of going for regular life insurance policies that has more monthly premiums, we can choose many low premium policies that help us to meet unexpected happenings.
Stop considering the insurance as a mode of savings for profit. Such policies will have more premium. Therefore, we should select the policies that truly help us in testing times with low premium.
Keep this manthra in mind:
INVEST IN THE INSURANCE TO INSURE YOURSELF AND FAMILY
INVEST IN OTHER SAVINGS OPTIONS LIKE FIXED DEPOSITS, MUTUAL FUNDS, SHARES, ETC, FOR PROFITS.
DO NOT COMBINE THE BOTH.
Let us see such Insurance Policies here:
(1) INDIVIDUAL PERSONAL ACCIDENT POLICY
This policy covers accidental death & disablement. Accident Insurance offers global cover of up to 72 times of your monthly income. This policy protects the families from financial instability in case of disability or death of loved one due to accident.
Some other benefits covered by these policies are: Disabilities in hands, legs, eye sight, bone fractures, accidents while walking, falling down in bath room, dog bite, fire burn, snake bite, train, road and plane accidents, etc.
Both males and females of any age can take this policy without any medical examination.
This policy is a must for everyone.
(2) MEDICAL INSURANCE POLICY
Anyone of any age between 5 and 70 can take this policy. If you are admitted in a hospital atleast for 24 hours, the expenses will accept all the medical expenses.
Two types of this policy:
(i) Individual health insurance policy and (ii) family floater policy.
Individual health insurance policy covers a single person. Whereas, Family floater policy covers the entire family in a single policy itself.
Family floater policy can be taken for any amount between one and ten lakhs and in some companies, even more. The entire policy amount can be used by a single person or by multiple persons.
Take this medical insurance policy for small amount in your young age because you won’t have more medical expenses. Then, increase or change as family floater policy for higher coverage when you advance in age.
Renew the policy every year before the deadline otherwise the policy may expire.
(3) TERM INSURANCE POLICY
Instead of taking regular life insurance policies, term insurance policy is the low premium-high coverage category. Term Insurance policies should not be taken as an investment for profits. It will come with a big purse only when we face a sudden death. No maturity benefits.
The important feature of this Term Insurance Policy is the very low premium. The online policies offer very low premium rates. For Rs.25 lakhs coverage, the annual premium for a 30 years old person on 30 years term in an online policy is just around Rs.3700. In the non-online term insurance policy, the for Rs.25 lakhs term insurance policy for 30 years old person for 30 years will be just around Rs.11,500.
(4) LOAN COVER TERM INSURANCE POLICY
This is a very useful term insurance policy for those who have acquired loan from banks and financial institutions. In case the borrower dies before completing the loan, this term insurance policy will provide the required amount to complete the loan. Thus, we can avoid our mortgaged house being taken by the bank. Similar loan cover term insurance policies can be taken for the loans for purchasing the vehicles also.
(5) CRITICAL ILLNESS POLICY
It provides the insured person a lump sum amount, in case he/she gets diagnosed with a critical illness such as cancer, heart transplant, sclerosis, coma, heart attack, paralysis, kidney failure, etc that are not covered in a standard health insurance policy.
Since such critical illness is less in the young age, it can be taken after the age of 40. In case, any of the family members have any critical illness, and you fear that you too may acquire such illness, you can take this policy even in your young age.
To get the coverage amount, the patient should be alive atleast for 30 days after getting diagnosed with any critical illness. This insurance amount will support the medical expenses and the loss of income for the family due to the hospitalization of the patient
This policy can also be taken as a rider policy with small premium along with your regular life insurance policy. However, the benefits may be less as a rider policy. Therefore, it is advisable to take as a separate policy.
(6) PROPERTY INSURANCE POLICY
Property insurance Policy is a policy offered to the house owners that provides coverage for their ‘property structure’ as well as ‘its contents’.
This will compensate if our property is damaged or demolished because of unexpected happenings such as fire, flood, burglary, theft, etc. that are specified in their policy document.
These six policies will make your life safe from any unexpected happenings and expenses.
Hope this article has helped you to make a clear insurance plan for you and your family. We will see them in detail in some other posts. If you find this article helpful, share the same using the share buttons below.