Must Have Life Insurances to Live Tension Free

Life Insurances 166 views

 

Many times life puts us into several unexpected situations. However, we can't stop these unwanted situations, but we can give our lives a bit of protection from these unfortunate events.  Thanks to the insurance, we can possibly protect ourselves from these undesirable events, at least financially.

If financial experts are to be believed, there are five insurances that an individual must have: life, health, vehicle, travel and retirement.

Without much ado let's start discussing all the said insurance plans.

Term Life Insurance

Term life insurance offers  full protection and financial stability to your family in case of any unfortunate events. This life insurance product can be availed under any unfortunate event within the timeframe (term period of 10 years, 20 years, etc). It's is a must have on your bucket list of required insurance policies to protect your parents, spouse, children or loved ones from any financial hardship in the future. Term life insurance would provide enough money to cover various kinds of expenses, and give your family a financial cushion that will help them regroup after your demise.

Benefits

  • Risk Cover
  • Cost Effective
  • Tax Benefits
  • Online Buying
  • Convertibility

Medical & Health Insurance

It would not be wrong to say that skyrocketing fares of medical & health care are enough to make medical & health insurance a necessity. Yes, even a one-time visit to the family doctor can result in soaring cost. Moreover, some serious injuries or sickness that result in a hospital can generate a hefty bill, and sometimes lead to five-figure costs of like staying at a lavish resort. Thus, having a medical & health insurance helps you in covering a lot of expenses related to medication, hospitalization and surgery.

Must Read  Count the benefits & negatives before buying a term plan

Benefits

  • Ambulatory patient services
  • Emergency services
  • Hospitalization Cover
  • Maternity and newborn cost cover
  • Laboratory test cost cover
  • Lump sum for critical illnesses
  • Attendant allowance

Vehicle Insurance

If you own a car, motor cycle or any other vehicle, vehicle insurance is a must have for you. This insurance gives you cover against accident or theft, if your vehicle is involved in an accident. However, accidents happen   suddenly, and most of the time are tragic. Thus, having no vehicle insurance puts you at risk. So, having a comprehensive vehicle insurance is something that you should not skip as it helps to cover all possible losses and damages.

Benefits

  • Mandatory
  • Loss or damage by accident
  • Liability for third party injury/death
  • lawsuits, including legal fees
  • Covers damage caused by theft, fire
  • Additional discounts

Travel Insurance

When it comes to travel insurance, it is also something that an individual must have. It helps you to cover all your medical expenses or financial losses that you might incur while travelling. If you are someone who travels domestically or overseas very often, it is undoubtedly the best protection for you to have. The travel insurance covers personal accidents, hijackings, travel delays, damage, sickness and more.

Benefits

  • Emergency Medical Treatment
  • Medical Evacuation
  • Cancellation, Curtailment & Trip Interruption
  • Missed Departure
  • Personal Liability
  • Legal Expenses
  • Loss of Personal Belongings/Baggage

Retirement Insurance Plan

Retirement insurance plans, which are provided by various life insurers, offers benefits of insurance as well as investment. Typically, a retirement plan has two phases, namely accumulation and vesting. During the accumulation phase, the premium paid by you on the insurance plan gets accumulated throughout the tenure of the policy. Subsequently, the accumulated money gets invested in securities, which have got the approval from the insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI). Vesting stage, which follows the accumulation phase, is the time period when you start getting the payments from the reserves. Vesting age in most plans comes around 40-70 years.

Must Read  The Importance of Life Insurance in Case of No Dependants

Benefits

  • Tax Saving
  • Regular monthly pension
  • Sum Assured
  • Share in insurer's profit
  • Partial Withdrawal

The Bottom Line

Getting an insurance can take a chunk out of your budget, but living without it is absolutely not a wise decision!