Moneycontrol
Last Updated : Nov 23, 2018 11:40 AM IST | Source: Moneycontrol.com

Insurance products that every person should have in their financial portfolio

To minimise the risk of financial loss, your insurance cover should offer protection for not only your possessions, income but also, for the loved ones.

Navneet Dubey @imNavneetDubey

You work hard throughout your life to build wealth and live a comfortable life. However, you should not forget that life is full of uncertainties. The untimely death of a bread earner, or any burglary home can cause huge financial loss. To minimise the risk of financial loss, your insurance coverage should offer protection for not only your possessions, income but also, for the loved ones you will someday leave behind.

Thus, it is better to safeguard yourself from these risks by transferring them completely to an insurance company.

Here are five important insurance products which everyone should have during the lifetime to protect themselves and their family:

Life Insurance

Naval Goel, CEO & Founder, PolicyX.com said that a person should invest in a life insurance plan just not for the safety of his/her family, but he/she can also use it for achieving long-term goals, dealing with debt, saving tax, and for savings purpose also. But it is highly useful for securing your family and loved ones against different financial contingencies. If an individual invests in it at a young age then he/she will be liable for several additional benefits, wider coverage and discounts as well.

Health Insurance

Tarun Mathur, Chief Business Officer- General Insurance, Policybazaar.com said that having a health insurance policy is a must. Instead of considering it as an additional tax benefit option, individuals should ideally understand the benefits of such a policy. You should get one if you already don’t have it and include coverage against not just a number of diseases but also of the pre- and post- hospitalization medical care expenses.

“Cashless Treatment also becomes a viable option with health insurance as your insurance company works in collaboration with various hospital networks and you need not have to worry about anything from transportation expenses to the room rental. Yearly medical check-ups also get covered within the policy and allows you to only take care of yourself or your loved ones,” he said.

The other benefits and features of the Health Insurance Policy that an individual must look for as per their individual need can be Restoration Benefit, Sub Limits, Cashless Hospitalization Services, Maternity Cover and Portability.

Personal accident insurance

We all know the importance of having a personal accident policy. Goel says that the benefit of investment in an individual personal accident policy is the required coverage in the event of death, loss of sight or limbs or other permanent disablement due to an accident. “This policy is not an indemnity policy, but a benefit policy. It will be there for you to provide the needful financial assistance in case of emergency,” he added.

Home Insurance

Owning a home is one of the biggest milestones of an individual’s life and maintaining the same is integral. A simple construction of a house requires lifetime’s savings and plenty of time and it only takes a minute to be destroyed.

Mathur said it’s always suggested to protect your property against all kinds of threats both man-made and natural. “Thus, you should buy a home insurance policy so that it can provide coverage to both content and structure of your home, provide protection against accidental breakage or breakage of fine glass fixtures, provide protection against theft, lost or burglary, cover losses due to short circuits or mechanical breakdown and also cover any damage due to fire, storm, earthquake and lightning,” he added.

While buying a home insurance plan, you should also consider the right value of your property, right plan for your property and a faithful insurer.

Motor Insurance

Well, there is no doubt in saying that having a motor insurance is mandatory in India. Everyone must be aware of the fact that it is illegal to drive on the roads of India without a valid motor insurance policy. But apart from being the mandatory feature, investment in motor insurance is always beneficial as it helps you in dealing with the harsh time and unwanted financial contingencies that occur on the roads while you are driving your car/bike.
First Published on Nov 23, 2018 11:33 am
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