Insurance is an indispensable component of any financial plan, but knowing which types you need can be confusing. Here are the four major types of insurance that everyone should consider:
Life insurance
Anyone who has ever been responsible for a family knows that life can be unpredictable. No one wants to think about what would happen to their family if they suddenly passed away, but it is an important decision that every breadwinner needs to make. Life insurance provides peace of mind in knowing that your loved ones will be taken care of financially if something happens to you. It is amongst the most important investments you can make and does not have to be expensive. The key is ensuring you are adequately insured so your loved ones will not have to worry about money when they are already grieving. Many types of life insurance policies are available, so it is easy to find one that fits your budget and your family’s needs.
Health insurance
Everyone gets sick or injured sometimes – it’s just a part of life. But when you don’t have health insurance, those medical bills can quickly become overwhelming. In fact, a single trip to the hospital can easily cost lakhs of rupees. And if you have a chronic illness or condition, the costs can add up even more over time. About Rs 4-5 lakh is how much a major surgery costs. Angioplasty or bypass surgery will cost at least Rs 3–5 lakh, while a kidney transplant will set you back at least Rs 8 lakh. That’s why health insurance is so important. It helps to cover the cost of your medical care, so you don’t have to worry about how you’ll pay the bills. And if you have a plan with good coverage, it can also help you get preventive care and screenings, which can detect problems early and help you stay healthy. So, whether young or old, healthy or sick, everyone needs health insurance.
Home insurance
Most people’s largest investment is their home. It is where people raise their children and make lifetime memories. That’s why it is so essential to protect your home with insurance. One of the things you hope you never need to use is home insurance, but it’s available for you when you need it. No one likes to think about their home being damaged or destroyed, but it’s a risk we all face. Home insurance helps to safeguard your home from damage or loss due to events like fires, theft, and natural disasters. At the end of the day, home insurance is an essential part of being a responsible homeowner. When it comes to something so vital as your home, it’s always better to be safe than sorry.
Accidental insurance
No one knows can predict when an accident will happen. It could be while you’re out for a walk or even just working around the house. Accidents can occur at any time and frequently result in expensive medical bills. That’s why accidental insurance is so important. Accidental insurance provides financial protection if you’re injured in an accident. It can help cover the cost of your medical bills and lost wages if you’re unable to work.
While other types of insurance are available, these four should be part of everyone’s insurance portfolio. They are definitely a part of my portfolio.