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6 Insurance Covers that Everyone Should Have

Life is full of risks. In our day to day life, we all encounter various risks related to health, vehicle, home, business, and life, but how many of us work on covering these hazards. Well, as per the reports of the Insurance Regulatory and Development Authority of India, the insurance penetration rate in India is 3.9%, which is below the average 6.3% of World’s coverage. This data is as per the reports of the financial year 2014-15, however, the situation is not changed much in these years.

In this article, we are going to discuss some of the essential insurance covers that everyone should have in order to get protection against different risks that may come in our day to day life:

1. Risk: Escalating Healthcare Prices

Risk Insurance Cover: Health Insurance: 

The environmental pollution and unhealthy living style are becoming two of the main reasons for encountering serious medical illnesses at a younger age. Moreover, you can encounter an accident or other seasonal illness anytime, which may require hospitalization. Since medical costs are getting high day by day, thus facing any serious medical emergency may come as huge financial loss. In order to avoid a financial crisis in medical emergencies, it is suggested to purchase a health insurance plan. Therefore, you get financial help in case of a medical emergency, only by paying small premiums every year for your health insurance plan.

2. Risk: Damage or Loss of Own Vehicle

Risk Insurance Cover: Motor Insurance:

To drive on the roads of India, it is mandatory to have at least third-party insurance cover. However, third-party insurance provides cover for damage or loss to third-party only in an accident by your own vehicle. So, for your own vehicle's damage, you have to pay from your own pocket. Therefore, to get financial coverage against any damage or loss to your own vehicle, it is suggested to have a comprehensive motor insurance policy. To get extra cover such as roadside assistance, zero depreciation, engine protection, etc. you can attach add-ons to your comprehensive coverage.

3. Risk: Damage to House or Loss of Household Contents

Risk Insurance Cover: Home Insurance:

There is no better place on earth than your home. You put our best efforts to make our house a home and thus bring in all that can make it a comfortable place for us. In this way, your house gets filled with several precious amenities like big TV, washing machine, imported and expensive showpieces, and other modern electronic gadgets with time. However, have you ever thought that what will happen to your house and its contents, if you face an earthquake or flood or fire? Well, in such cases a home insurance policy works as a boon because it compensates you for the damage of the structure of the house as well as its contents. It is seen that most of the home insurance policies have low premium as compared to the cost it pays against damages and losses to your house.

4. Risk: Personal Accident or Disability Resulting in Loss of Earning Capacity

Risk Insurance Cover: Personal Accident Insurance and Disability Insurance:

An accident can be as fatal as it can leave one disabled and may reduce his/her earning potential. On one hand, where a health insurance plan takes care of all the medical expenses such as bills of the hospital, the other hand personal accident insurance covers the requirements of income loss. Therefore, personal accident cover is one of the insurance policies that cannot be ignored. A personal accident insurance policy covers four contingencies that can arise from an accident, permanent total disability, death, temporary total disability, and permanent partial disability.

5. Risk: Untimely Death

Risk Insurance Cover: Term Insurance: 

Life is uncertain and early death can occur to anyone. While we involve ourselves in making financial goals, life can change the whole course in the form of our early death. So, with protection against all above mentioned financial crises, it is suggested to get insurance cover against untimely death in the form of a term insurance plan. A term plan makes the family members of the insured financially independent in such cases. Moreover, you can get such coverage at very affordable premium rates.

6. Risk: Critical Illness

Risk Insurance Cover: Comprehensive Health Insurance Plan with Critical Illness Cover:

As per the reports of the World Health Organization, the cases of critical illness and lifestyle-related diseases have increased in past few years. However, if you take a comprehensive health insurance policy that covers critical illness, you can reduce the risk of financial instability, if you or any of your family members encounter one such disease.

Wrapping it Up!

In this way, these are top 6 types of insurance covers that most of us should take. Apart from the coverage that they give, some of the policies like health insurance policy offer tax benefits as well. Therefore, considering these plans also come under good financial planning category.

Written By: PolicyBazaar - Updated: 01 September 2020

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