What Kind Of Insurance You Need Based On Your Situation
Challenges and problems are associated with human life. They keep coming across our path as we move along. From unexpected health-related issues to sudden setbacks in business or devastating occasions, life is full of flighty troubles and problems.
In such circumstances, having insurance turns into a lifeline. But as each person is different, his way of living and standard of living is different, so his needs and wants from the insurance policy are different. Therefore, one has to choose the kind of insurance you need wisely.
Several factors depend on the kind of insurance you need. In this blog, we will help you sort out your dilemma of which kind of insurance you need.
Buying the Right Insurance
Insurance is like a pact or agreement between you and the Insurance company. Pay them a modest quantity of cash consistently, like a club enrollment fee. In return for that cash, this organization promises to be your monetary support if something unforeseen occurs.
The right types of Insurance help ease the burden of various things like going to the doctor, rebuilding the house, fixing our car, paying medical bills, etc.
But it is crucial to decide what kind of insurance you need. It should be carefully analyzed and taken based on several parameters. A few of them are your needs and priorities, your existing financial conditions, your future possibilities, the amount of coverage you need, etc.
Buying the right kind of insurance you need begins with understanding your requirements and wants from the Insurance company and making the payment based on intelligent decision-making.
What kind of Insurance do you Need?
As already mentioned above, the kind of insurance you need depends on your lifestyle, living standards, priorities, choices, and the coverage that you need. For instance, you are a person who is solely invested in your business and wants to secure it from any kind of disruption. Then, your Insurance choice will be Business Insurance.
If you are a family man, you will be more inclined towards investing in a Family Health Insurance or Family Life Insurance. If you are a pet lover and want him to be protected and need proper healthcare in times of need, then you will want to buy pet Insurance.
Living in a danger-prone area will lead you to be a Home Insurance. So, different circumstances and situations lead to other types of Insurance policies. These insurance policies are made in a way to cater to different purposes.
Now let us understand these Insurance policies in detail so you can choose the best one for you.
Car Insurance
Many people are car lovers these days. They want to insure their car from various accidents and unexpected situations on the road. So, they can opt for Car Insurance to keep their wheels safe and protected. Various types of Car Insurance are available in the market, such as:-
Liability Coverage
This is a baseline protection insurance. It ensures you in case you are at fault for causing harm to others in an accident.
Liability Coverage has two main components:
- Bodily Injury Liability: This includes medical expenses, rehabilitation costs, and potential legal fees for the individuals injured in the accident.
- Property Damage Liability: If your accident led to damage to someone else's property, then this aspect covers the recovery costs.
Having liability coverage has become a necessity in some places.
Collision Coverage
This aspect covers the vehicle in case of a collision with any other vehicle. However, this coverage is not mandatory but provides great mental peace to know that your car is protected irrespective of whosoever is at fault.
Comprehensive Coverage
This insurance coverage acts as overall protection for the vehicle. It insures the car against non-collision damages such as thefts, natural disasters, etc.
Together, these can provide vital protection to safeguard your vehicle against all kinds of damage.
Health Insurance
For fitness geeks and health-conscious people worldwide, health insurance is the kind of insurance you need. In India, 37% of people in our country are covered under health insurance.
It ensures that your medical emergency needs are fulfilled without draining your savings. Even the Indian Government under the Ayushman Bharat , Pradhan Mantri Jan Arogya Yojana or PM-JAY, understands the need for Health Insurance and is providing it.
Some kinds of Health Insurance such as:
Basic Health Plans:
These cover the core medical expenses like doctor visits, hospital stays, room charges, nursing care, essential medications, etc.
Specialized Plans:
You can always go for these plans if you have specific health concerns. Some are Vision Insurance, Dental Insurance, Mental Health Coverage, Maternity Coverage etc.
High-deductible plans:
These offer low premiums and higher deductibles and are an attractive option for those who do not frequently visit doctors.
Life Insurance
Life insurance provides some amount to the beneficiaries of the policyholder upon the death of the policyholder under certain circumstances.
Over 2 trillion Indian rupees worth of life insurance premiums were insured in India in 2022.
Life insurance is of two types:-
Term Life Insurance
In this type of coverage, the beneficiaries get the coverage only if the policyholder dies in a particular lifetime. For this, people can’t qualify if they have any health issues.
Whole Life Insurance
Whole life insurance provides complete coverage for the entire life of the policyholder. In this, the family members get the coverage at the policyholder's demise, irrespective of age.
Business Insurance
In this era of startups and entrepreneurship, businesses are a new trend. So, to safeguard their businesses, this Insurance is what you need. It helps protect and defend the business from unexpected setbacks. Some key types are:
- General Liability Insurance: It covers injuries or property damage caused by your business, such as defamation or copyright infringement or repair costs if you caused damage to someone else’s property.
- Property Insurance: This type of Insurance covers damages to your property and building structure, including pieces of equipment, inventory, etc.
- Business Interruption Insurance: It covers ongoing expenses, such as rent, utilities, employee salaries, etc.
- Professional Liability Insurance: Basically for service-based businesses.
Home Insurance
Home is like a protective place for everyone. It is a shelter where we have made thousands of memories. To protect it is our duty, so to do so, Home Insurance is the kind of Insurance you need.
- Dwelling Coverage: This type of coverage includes the structure of your home, walls, floors, roof, etc.
- Personal Property Coverage: Every small or big thing in the home has some or other memory associated with it. So, to protect our belongings, furniture, etc., this is the best coverage.
- Liability Coverage: This protects you against some legal actions that someone could take if he/she has accidentally got injured on your property.
- Additional Living Expenses (ALE) Coverage: Assists with temporary living expenses if you have to move out of your home due to a covered event.
Several other Insurance types also has their prime goals. For example, Disability Insurance helps you when you cannot work temporarily or permanently, so you are provided with some portion of the salary to fulfill your family’s basic needs.
Then there are others like Pet Insurance, Renters Insurance, Retirement plans, children's plans, Travel insurance, Senior citizen health insurance, Critical illness, Fire insurance, Liability coverage, etc., for their specific purposes.
Insurance Companies in India
Here are the top 10 best insurance companies in India:-
- Max Life Insurance Company
- AEGON Life Insurance Company
- Bharti AXA Life Insurance Company
- Bajaj Allianz Life Insurance Company
- HDFC Life Insurance Company
- Life Insurance Company (LIC)
- Pramerica Life Insurance Company
- Exide Life Insurance Company
- Kotak Mahindra Life Insurance Company
- Reliance Nippon Life Insurance Company
Conclusion
Now, after knowing in detail about different types of Insurance, it will be a great help for you in deciding the kind of Insurance you need. Stay updated and choose the best.
