Insurance is an essential part of financial planning. As critical it is to plan your finances well and select the right investment avenues, it is equally important to ensure there is a backup plan too. Insurance is one such avenue where a safeguard can be ensured for all things living and non-living.
Insurance in India is primarily divided in two types- life and non-life. As the name suggests, life insurance deals with a financial safety net for the beneficiaries after the death of the policyholder, non-life acts as a safeguard for financial losses. As the category of non-life is an umbrella term that covers everything other than life, they are also called as general insurance plans.
General insurance includes the following common types of insurance covers –
- Health Insurance
- Motor Insurance
- Travel insurance
- Commercial Insurance
- Home insurance
Let us understand the benefits of the above sub-divisions of general insurance plans.
#1 Health insurance: A medical insurance comes handy to provide for situations where there is need of medical aid. At these times, mental stress is mounting high and worrying about the finances is the last thing you need as an added stress. Since health insurance policies cover for different ailments across age-groups, it is a must-have in present times.
#2 Motor insurance: Akin to health insurance, motor insurance is also needed to take care of financial losses due to accidents and damages. Repairs to your vehicle can otherwise burn a hole in your pocket and thus should be purchased and renewed periodically. Since the importance of a motor insurance policy for the driver and for others on the streets is unfathomable, third-party coverage is mandatory for every vehicle. This ensures any liabilities due are covered by your bike or car insurance plan.
#3 Travel insurance: How distressing is having to deal with lost baggage and other important documents especially when you are away from home. A travel insurance policy helps by ensuring necessary aid is available when such situations arise. Baggage loss and document cover is not the only protection that is available, but instead a wide range of unfortunate events are covered including medical exigencies. Further, a travel insurance plan is available for different types of travellers like students, senior citizens, and even frequent travellers.
#4 Commercial insurance
Business are prone to risks and with the help of commercial insurance, you can mitigate them. Commercial insurance coverage includes protection from risks like liabilities due to customers, property damage, liabilities due against employee benefits, extended warranty benefits and more.
#5 Home insurance
Home being the single largest asset for most individuals also needs an insurance cover from natural as well as man made perils. Damages to your beloved home can be shattering and can have a big dent in your bank account. Using a home insurance policy, you can have the mental peace knowing any such damages are covered by an insurance policy.
These are some of the popular, yet little known benefits of a general insurance plans. As critically you analyse your investments, make sure you do the same when it comes to buying your insurance plans as they help your safeguard your investment in the long run. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.