5 Insurance Policies You Must Have

Did you know that the first type of insurance was developed as far back as in ancient Babylon, around 3,000 to 4,000 BCE? These were bottomry (maritime) contracts, under which the loans granted to merchants would not have to be repaid if the goods were lost at sea. Such contracts were even present in ancient India.

But despite having such an old link with insurance, the penetration of insurance policies in India is extremely low. In 2017, the overall insurance penetration in India stood at a mere 3.69%, according to India Brand Equity Foundation. For comparison, the average insurance penetration across America was 7.14% in 2018.

A major reason for such low figures is the low financial knowledge in our country. Many people don’t even get insurance for their bike, despite it being mandatory. If you currently don’t have an insurance policy, then here are 5 types of policies you must consider purchasing as soon as possible.

1. Health Insurance

With the way medical costs are rising each year, having health insurance has become a necessity. With it, you could end up in a financial crisis while trying to deal with a medical one. A health insurance policy protects you by taking care of hospitalization and treatments costs, while some even pay for pre- and post-hospitalization charges.

You can opt for an individual plan or a floater plan, in which all members of your family are covered. There are special plans too, which provide cover against critical illnesses, such as cancer and heart problems.

2. Life Insurance

Life insurance provides financial security to the policy holder’s family, in case of their untimely demise. These plans are quite affordable but do not pay out until the policy holder dies.

Some of the things to keep in mind when it comes to life insurance:

• The cost of premium rises as an increase in the age of the applicant.
• The death cover may not be provided in certain conditions, such as demise due to suicide or sexually transmitted diseases.

3. Disability Insurance

Although some people might disregard the need for this policy, the fact is that an accident can take place anywhere and at any time. Disability insurance provides financial assistance to a person, in case they become disabled and cannot work for an extended period.

4. Vehicle Insurance

A car or two-wheeler insurance is required by law for all vehicle owners in India. According to the Motor Vehicles Act, 1988, all vehicles being driven on public roads must have a third-party liability cover. Liability insurance covers bodily harm or damage to the property of others, caused by your vehicle. There are other options available as well, such as comprehensive cover and personal collision cover.

5. Home Insurance

Home insurance protects your house against theft or damage. When choosing house insurance, look for a policy that provides structure and amenities replacement, along with the cost of accommodation, until your home is repaired.

Getting insurance has become incredibly easy these days. Whether you need bike insurance or life insurance, you can simply get it online.

About This Author

Shaheen Shaikh http://www.adrclinic.co.uk Joined: April 29th, 2018