by Jenny Dsouza
Published Fri, Dec 23rd 2016, 09:10 | Finance
It is well worth knowing about the various types of insurance covers available because insurance is a form of protection against any unforeseen expenses that could drastically affect your finances.
Insurance is always important. Businesses always keep themselves fully insured. Take a leaf from their book and keep yourself fully insured at all times and against all eventualities. The simple reason is that without insurance you are left with a huge burden and could possibly go into debt or be unable to take the situation, such as hospitalization. There are about 25 insurance companies in India offering a variety of insurance plans and Ulip Insurance Policy.
Life insurance
This should be at the top of your list. In the event of death the insurance company pays out the full amount to your family. There are various types of life insurance plans:
· A term insurance keeps you protected for a specific period and should the insured expire before that term, the beneficiaries receive full amount. Should he survive the premiums paid are not returned.
· The whole life policy covers a policy holder for life and pays premiums until death, whereupon his family members receive the full amounts paid so far.
· Endowment policy combines risk with financial savings in that if he dies during the period, beneficiaries receive full amount and should he survive, he gets back the premium paid.
· Money back policy gives periodic returns to the holder during his life. If he dies, beneficiaries receive full payment and if he survives he gets the balance of amount minus amounts paid thus far.
· Ulip Insurance Policy provides life insurance cover and part of the money is invested in equity and debt in order to maximize returns, an ideal way for a person to plan for his retirement.
Car Insurance
Car insurance plans are of two types:
· Mandatory third party insurance plan keeps insured safe against claims in case his vehicle is involved in an accident.
· Comprehensive cover keeps him safe if he is involved in an accident and also assures returns if his car is damaged/lost/stolen.
Two Wheeler insurance plans
Two wheeler insurance plans are similar to car insurance covers in the form of third party liability and comprehensive insurance.
Health insurance plans
Health insurance plans are available in various types ranging from basic mediclaim to a number of top ups for added protection. You must check plans and top-ups as well as exclusions carefully in order to arrive at the best cover suited to your conditions and to your family.
Travel insurance plans
When you travel, especially when you travel abroad, insurance is necessary in order to cover emergency medical expenses and to also keep you safe should your baggage be lost or stolen or if your trip is delayed and you incur additional expenses. Premiums start at Rs. 300 and sum insured can range up to Rs. 500000 and more.
Home Insurance plans
Home insurance covers your home in case it is damaged by floods or fire or it has been vandalized. Further home insurance plans also cover valuables inside your house, appliances and gadgets.
If you consider the pros and cons of insurance plans you will see that all, if not most of the above covers are necessary to keep you fully covered against any type of eventuality.
Source: http://articles.abilogic.com/160670/various-types-insurance-plans-available.html