Uncertainty is a part of your everyday life. Preventing the unexpected is not in your hands, but you can get the right protection for yourself and your family. An insurance policy is similar to an airbag for your loved ones. It can act as financial collateral against any untimely incident. Nowadays, there are plenty of insurance policies available, and all insurance companies try their best to convince you to take their insurance plans. Selecting from numerous possibilities can be confusing as well as overwhelming. Well, you should choose the policy as per your specific requirement. Essential factors like age, number of children, employment, and lifestyle should play a role in your decision. Read on to know about the Top 7 Types of Insurance Plans that Everybody should have, recommended by professional financial experts.
Life Insurance Plans
A policy related to life insurance acts as a contract between an insured and an insurer. The insurer can be an insurance company that financially protects the family of the insured, in case of their death. This type of insurance should be on high priority in the list of your needed insurance plans. Life insurance plans are of three types – Term life insurance, Universal life insurance, and Whole life insurance. A term life insurance plan will provide financial aid for a particular period, whereas a universal or whole life insurance plan is designed to provide lifetime financial assistance.
Medical Insurance Plans
Nowadays, even if you visit a clinic for a minor illness like cold or cough, the medical bill will cost you a hefty amount. During this COVID pandemic, the cost of medical care has touched the sky. Severe illnesses and surgeries that require you to stay in the hospital can cost a fortune. These high costs of medical care should give you a strong reason to take a medical insurance plan. Although many companies provide their employees with health insurance services, some companies do not offer the same. Buying a health insurance plan can be expensive, however, if you are not health insured, then the hospital coverage cost can be much higher.
Also Read – Tips To Lower Your Health Insurance Costs
Long-Term Disability Coverage Plans
Thinking about this plan can be scary, however, it is advisable to take this insurance cover. There is a lot of uncertainty regarding incurring critical injuries. If it happens and you are refrained from joining work, then a disability insurance plan will compensate for your lost salary. This insurance plan covers partial, total, temporary, and permanent disability. Long-term medical care services are not part of the plan. This insurance policy is similar to the life insurance policy.
Motor Insurance Plans
As per the Motor Vehicles Act 1988, it is mandatory to have a third-party coverage plan for your vehicles. Insurance companies and financial advisors recommend opting for a comprehensive coverage plan. Although the comprehensive plan is optional, you should consider buying a comprehensive motor insurance plan, as it provides you a dual benefit. In case of an accident, the plan will cover your financial losses due to the damage caused to the vehicle and it will also cover the expense for injuries and damages caused to others.
Home Insurance Plans
Home insurance plan or property insurance plan cover any immovable structure or any building. The property can be a residential one or a commercial one. If any calamity occurs or if any damage is incurred to the home then financial assistance can be claimed from the insurance company. These insurance plans also safeguard the things which are present inside the property. A property insurance plan can be taken to safeguard your home, your shop, or your office. The advantages are protection against fires, robberies, and natural disasters.
Travel Insurance Plans
Travelling is a major part of life – some of us travel regionally, some of us travel nationally, and some of us travel internationally. Travel insurance plans are provided to provide you with financial security while taking a trip. This insurance plan comes under a short-term insurance service. The major benefit of this plan is, that it covers baggage loss/delay, flight delay/cancellation, travel cancellation, and also reclaiming of lost documents while traveling.
Mobile Insurance Plans
Most of you own an expensive mobile phone, and losing your smartphone can be quite scary. Hence, it has become important to take a mobile insurance plan. This plan allows you to apply for a claim in case of any accidental damage. You can also put a claim if your phone gets stolen. A smart insurance cover that makes replacing the damaged/stolen handset with a new one.
Wrapping Up on Types of Insurance Plans
These are the Top 7 Types of Insurance Plans that Everybody should have and each type of insurance policy is aimed at helping you to meet various life cover as well as investment goals. When you are buying an insurance policy, don’t go by the publicity, ads, or what others are buying because your requirements may be different from them. Spend some time to do some research and go for the one, which meets your personal requirements of an insurance plan.