The market is flooded with several types of insurance policies. While policies such as comprehensive motor insurance or a health insurance policy are crucial, there is also a risk of having too much coverage.
Paying an excessive amount of money as premiums can lead to a shortage for other crucial areas, such as your emergency corpus building or retirement savings. So, here are the 5 different types of insurance plans that are necessary for every individual today.
Also Read – Everything You Need To Know About Workers’ Compensation Insurance
Top 5 insurance plans that everyone must take
A crucial aspect of financial planning is purchasing insurance policies. Health insurance plans, life insurance policies, and other types of insurance policies all serve as a safety net in the event of an unfortunate circumstance. So, here is the list of top 5 primary insurance plans that one needs –
- Two-wheeler insurance
A two-wheeler insurance policy, also known as bike insurance, enables riders to protect themselves against financial losses that might occur to the two-wheeler, to themselves due to mishaps like collisions, fires, thefts, or natural disasters.
Additionally, individuals will be shielded from any liabilities brought on by harm or damage to third-party individuals or property. Different kinds of two-wheelers, such as motorcycles, scooters, mopeds, etc., are covered by a two-wheeler insurance policy.
What’s covered?
- Thefts
- Personal Accidents
- Accidents
- Natural Disasters
- Fire
- Third Party losses
Apart from these, one can also opt for a few add-ons such as –
- Zero-depreciation cover
- Return to invoice cover
- Breakdown assistance
- Engine and gearbox protection cover
- Consumable cover
Also Read – Why Do You Need Roadside Assistance with Your New Car Insurance?
- Health insurance
Health insurance, also known as medical insurance, is designed to provide coverage for financial losses in the event of a medical emergency brought on by disease, illness, or even an accident.
Depending on the terms and conditions, a personal health insurance plan may also include coverage for pre and post-hospitalisation costs, yearly physical tests, severe illness treatment, and maternity-related treatments.
A health insurance policy is one of the essential policies out there, and you should consider including it in your investment planning. One can also opt for family floater plans, critical illness cover, etc.
- Car insurance
Motor insurance, commonly referred to as car insurance, offers financial coverage for expenses incurred due to accidents, theft, natural disasters or third-party damage liabilities. As a result, you will be protected financially from the damages to your vehicle in unforeseeable events. Nonetheless it is always wise to consult an attorney after an accident. You can also find a hit and run accident attorney to help you out and deal with insurance companies if this is the type of accident you were involved in. There are two types of motor insurance: Third-party insurance and Comprehensive insurance.
What’s covered?
Although the coverage under a car insurance policy (Comprehensive or Third-party) depends on the terms and conditions of the policy and the policy provider, in general, it covers expenses due to –
- Thefts
- Accidents
- Personal Accidents
- Natural Disasters
- Fire
- Third-party losses
Apart from these, one can also opt for a few add-ons such as –
- Zero-depreciation cover
- Passenger cover
- Return to invoice cover
- Breakdown assistance
- Tyre protect cover
- Engine and gearbox protection cover
- Consumable cover
Also Read – 4 Reasons why you Must Buy a Life Insurance Policy if you Haven’t Already
- Life insurance
A life insurance plan is an agreement between an insuree and an insurer wherein the insurer guarantees to pay a sum of money in return for regular premium after a predetermined period or at the death of the insured individual. Some insurance plans also provide extra add-ons like critical sickness and accidental death benefits, while others provide a comprehensive benefit.
So, if you are an adult and you have dependents, life insurance is one of the best ways to secure the family’s future financially.
- Travel insurance
Travel insurances are designed to protect an insured individual from unnecessary financial drainage arising from unfortunate situations while travelling. These incidents might include personal accidents, emergency medical treatment, trip cancellation, loss of passport and delay, etc.
Typically, travel insurance has two primary types: basic option and comfort option. Compared to the basic option, the comfort option has more coverage and includes medical coverage, transit coverage and coverage for other major mishaps that can arise during travelling.
Also Read – How travel insurance can help your studies?
Hence, this is one of the top insurance policies one must have while planning a trip to protect oneself against unwanted financial losses.
Hence, apart from investing money in other insurance policies, purchasing the policies mentioned above can be beneficial for individuals. These are the most beneficial policies, and almost all leading insurance providers provide these insurance plans.
Moreover, it is advisable to choose an online insurance plan, as it significantly removes the hassle of paperwork, and can be claimed easily as well. Also Read – 5 Ways To Minimize Your Auto Insurance Premium