For people who have financial liabilities and dependents, life insurance is a must-have insurance policy. Life insurance comes to the aid of primary breadwinners by compensating for income loss during a difficult period.
A good life insurance policy provides appropriate coverage while also ensuring financial security for the insured’s family.
It is prudent to analyze one’s annual income and account for inflation, pay increases, and the expected number of years one wishes to continue working when getting life insurance.
- Health Coverage
Health insurance is a must-have insurance policy for everyone, since research shows that exorbitant healthcare costs cause a significant percentage of reported personal bankruptcies. This fact, combined with ever-increasing healthcare costs, makes purchasing a solid health insurance policy a wise financial move. Even a little illness or accident can have a significant financial impact, so the financial ramifications of major health issues or surgery are unfathomable.
Good quality healthcare is now unaffordable without a health insurance policy. It is extremely advisable to obtain health insurance coverage at a young age because people are healthier and the premium rates are lower.
- Automobile Insurance
According to India’s Motor Cars Act of 1988, all vehicles driven on public highways in the country must carry third-party liability insurance. Although full insurance is optional, including it in your vehicle’s auto insurance policy provides a twofold benefit: it protects against financial losses while also covering responsibility for injury or damage inflicted by your vehicle.
- Personal Accident & Disability Insurance
Although many people dismiss the importance of having a personal accident insurance policy, the truth is that accidents can happen at any time and in any place, making accident and disability insurance a must-have insurance coverage for everyone. A personal accident policy provides financial help in the sad event that a person gets incapacitated as a result of an accident and is unable to work for an extended period of time or at all. It considers permanent, temporary, partial, and total impairments.
When a person becomes disabled, this policy compensates for lost income by providing income replacement (for a maximum of two years). A Personal Accident Policy, like life insurance, pays out death payments to the insured’s family if something unfavorable occurs to him or her.
- Home Insurance
Home insurance safeguards your property against damage and theft. When purchasing this insurance, seek coverage that covers the replacement of the structure and contents/amenities, as well as the cost of living elsewhere while your house is being repaired. The policy must also provide enough liability coverage for any losses that may occur on the property.
- Insurance for Renters
Renter’s insurance is a must-have policy for anyone who does not own a home.It ensures that the property is protected in the event that something untoward occurs, such as theft or fire. It is also not expensive.
- Coverage for Long-Term Disability
Long-term disability insurance helps people who are unable to work.
While health insurance includes hospitalization and medical expenses, you may be responsible for any charges that your paycheck would have covered. Many businesses include both short- and long-term disability insurance in their plans, as well as various benefit packages. This would be the most cost-effective way to receive disability insurance.