Creating a strong personal financial plan is impossible without having your important assets protected against different unimaginable damage. Buying the right insurance policy is one of the only things that can help you safeguard your earning power and possessions.
What is the right insurance plan?
A right insurance plan is the one that covers as many risks as you can think of. Although it is not possible to cover all under one policy. Here are some insurance policies that you must know of before mapping your financial future.
- Life Insurance – If you are getting married or have given birth to your child, one of the first advice you will receive is to get life insurance. It is because you now have responsibilities on your shoulder, and you must ensure their safety even in your absence. Life insurance plays a major role in ensuring the financial security of your family. Even if you are single, health insurance is suggested as a must-have product in your financial portfolio.
As an employee, while planning for life insurance, you may first check with your employee as most of the companies provide life insurance cover to their employees as a benefit. Adding to which you can buy additional coverage at an affordable rate. One of the crucial decisions to be made in this process is to choose from the types of life insurance policies. The two types of life insurance are term insurance and permanent life insurance. While permanent life insurance cover is for lifelong security, term insurance covers a certain period that is usually up to 30 years.
- Health Insurance – There is a famous saying that ‘health is wealth’. When you have good health, you can focus on work and achieve your financial goals. It makes health insurance a must-have. In case you suffer an accident injury or a severe illness, good health insurance can cover huge hospital expenditures and other healthcare expenses. Health insurance is not compulsory as of 2018 but it suggested to buy for everyone for individual benefit.
Today, majority of the employers offer health insurance cover to their employees. If your company is not offering one, you must look for options available in the market and choose the best suitable plan. Even though the cost of health insurance comes across to be expensive for many, you must look at the benefit of coverage and plan to purchase one as early as possible.
- Property Insurance – This is one of the insurances that has been made mandatory for many. When you buy a home on loan, the bank you borrow money from may ask you to buy a homeowner’s insurance and secure the property. And why not, after all, a house is one of the most prized possession one purchases in their lifetime.
- Automobile Insurance – One of the mandatorily required insurance policies is automobile insurance. In India, vehicle insurance was made mandatory under the Motor Vehicle Act of 1988. One must have this insurance ready before they take their vehicle on the road. It is to secure rider and third party from damage.
Insurance policies come with different features, benefits and costs. As a buyer, you must research and compare well before buying one. Although having each one of the above mentioned is necessary.