Financial planners and investment advisors suggest you should buy an insurance even before you start doing your investments. From life and vehicle to health and home, insurance is important to ensure you and yours remain safe all the time, through all emergencies.
If you have dependents, you need to have a life cover to protect them. Life insurance caters to top five needs of a person – protection, savings, wealth creation, health and retirement. Protection becomes essential the moment there is financial dependence, so the dependents can carry on with life and the lifestyle even after the breadwinner’s death. It is essential irrespective of the age bracket. When you buy insurance, opt for term plans.
Health care expenses are on a rise. It is essential to have a health cover, so you don’t dip into your savings. A majority of Indian population believes health insurance is required only when you are prone to illnesses. This notion exists owing to under-penetration and lack of awareness about the benefits of health insurance. The 2018 Cigna 360° Well-Being Survey reveals that one in two respondents in India plan to finance their own medical expense using savings, and take insurance in old age. Four in ten people in India have bought health insurance for self, but the dependency on savings to finance medical cost is high. Buying earlier has advantages such as low premium, tax benefit, lower chances of rejection, wider options and adequate financial planning. Even if you have a health cover from your company, take a separate health plan.
If you have a car or a bike, it is important to take adequate cover to protect yourself, your vehicle and the third party from any damage.
The recent order of the Supreme Court that every new car sold should have a three-year third-party liability insurance cover and every new two wheeler sold should have a five-year third-party liability insurance cover is welcome. Currently, a significant percentage of cars and two-wheelers don’t get the mandatory third-party insurance. As a result, common man who meets with a road accident involving such vehicles doesn’t get adequate compensation.
You need to protect the assets you have built.
Recently, a chartered airplane crashed into a house taking away some lives. No one can predict such incidents. Not having an insurance cover in such or similar circumstances would mean your assets will get totally destroyed and you will have to bear huge losses. A structured home insurance indemnifies you from any damage to the property. Another type of home insurance protects all appliances, furniture and other things in your house.