Types of Insurance Young People Should Buy?

Buying an insurance policy is not something that you will do every day such as shopping online on Amazon or binge-watching a series on Amazon Prime or Netflix. But definitely, something to brood over as seriously as you should think about yourself and your family. Especially when it involves a hefty amount of premium cost.

Be it general insurance or life insurance, both offer protection against the loss, which otherwise can lead to both financial and emotional stress.

1. Young People Must Consider a Health Insurance Policy

There is nothing more important than good health. Every year a lot of money goes into healthcare.  Despite putting in the best of efforts to maintain good health, there are certain things that are not predictable. And health is one of them!

Instead of running from pillar to post at the eleventh hour, it is better to cover your medical expenses with an adequate health insurance policy.

The best part is, if you buy it at a young age, you will need to pay a lesser premium. Moreover, the limitations on the claim will also be less. You can buy health insurance for yourself and your family.

Why pay exorbitant hospital bills, when you can have a health insurance policy to compensate the expenses. You don’t need to fret about arranging the funds. All you need to do is pay the annual premium and avail the medical treatment. After assessing your needs compare various health plans online, select the one that meets most of your health concerns.

Here’s what to look for when buying a health insurance policy -

• Members to be covered - Self and other family members including spouse, kids, and parents.
• Choose from the options of sum insured
• Check the coverage, limitations, room capping, deductibles etc.
• Check the type of diseases that are covered
• Check the list of panel hospitals
• And the claim settlement procedure

If you are unmarried, it makes sense to cover your parents as well. And if you are married, there are health insurance plans that will cover you and your kids, spouse, and parents in one plan.

2. Own a Car or Bike? Get a Vehicle Insurance Policy

Get your vehicle insured and legally drive while enjoying your ride.

Why do you need it? It is mandatory to buy property damage liability cover and bodily injury liability coverage. Whereas, a comprehensive auto insurance policy offers protection against perils like flood, earthquake, vandalism etc.  

Long story short, the insurer will pay for the damages listed in your policy. Moreover, you can also get underinsured and uninsured motorist cover, personal injury protection cover (to insure your passengers), and collision cover.

So, if you own a car or bike or any other automobile - hop on to your couch, compare and buy auto insurance products online and secure your ride.

3. Life Insurance Policy

You need a life insurance policy if you know that your death can leave your dependents in a financial trauma. If you are prudent, then you must consider buying this one.

It is a great way to financially secure your family when you are not around. You can go for a term life insurance policy, whole life insurance policy, Re-evaluate your annual life insurance needs as well as other significant life events such as house loan, divorce, marriage, the birth of a child, divorce etc.

Why Life Insurance Plan?

The dependents will get death benefit cover, which means that the insurance company will compensate the beneficiaries with the amount equal to the sum assured. There are various other benefits such as accidental death benefit rider, waiver of premium rider and accelerated death benefit rider.

Every policy is unique. Therefore, make sure that go through the policy documents before you buy one.

Here are few reasons to think about life insurance plan:

• If you are the sole breadwinner of the family
• If you are planning to start a family
• If there are debts/loans in your name

Here’s what you should do -

• Assess your financial needs
• Think about inflation
• Assess your financial goals
• Compare various life insurance plans online such as -
  • Term Plans
  • Endowment Plans
  • ULIPS
  • Money Back Plans
  • Child’s Plan
• Select a few policies that mirror your needs
• You can also consult with a financial advisor
• Diligently pay the premium and stay secure

When you are young the premium is less for the same benefits that you will get by paying an extra premium later. Hence, it is suggested to buy a life insurance plan and secure your family at an early age.

4. Future is Anyways Unpredictable; so Stay prepared - Buy Insurance Cover and Keep Going

You can also think about purchasing -

• Accident Insurance - This comes in handy in case of a fatal accident or permanent accidental injuries. Your beneficiaries will receive compensation as mentioned in the policy. This is highly recommended if you work in a hazardous environment and if your routine involves a lot of driving.
• Critical Illness plan - If you are lucky, you probably never have to use a critical illness insurance policy. But in case of a major health emergency, like heart attack, cancer, kidney failure, and critical illness policy could be the only thing protecting you from making a hole in your pocket with insurmountable hospital bills.

The Bottom Line

As they say, well begun is half done!  While making the most important decision of your life in regards to your education, job etc. take out time to secure the other aspects of your life with an adequate insurance policy. Hope this simple guide will help you to get started with insurance and make wise decisions.