Insurance forms a necessary part of your investment portfolio. Which insurance policies do you have? We bring you up to speed on the insurance plans you need to buy this year.
Every person yearns for a sense of security. That sense of security can come from amassing wealth, or having the support of your family, or just by the feeling that there is somebody watching over you and waiting to protect you. So even when life seems really hard and full of challenges, you can be secure in the knowledge that there is always an answer to your problems
Taking insurance helps you gain the peace of mind that you seek as you navigate life’s journey. However, most people only content themselves by taking life insurance. There are other insurance products that you must certainly invest in this year. We list the most important insurance policies to buy in the year 2018:
1 Term insurance.
It is necessary to buy a term plan in today’s times of high uncertainty. High inflation and rising living costs make it difficult to create a dedicated savings fund. Meanwhile, there is always the possibility of a loss of income due to unforeseen circumstances. Term plans in India from leading insurers like Aviva India are designed to help protect the policy holder’s family in case of the policy holder’s unfortunate demise while the plan is still active. What’s more is that you have get a high sum assured at comparatively lower premium with i-Term Smart. The best term plans in India in 2018 are extremely affordable, with a high sum assured (Rs 1 crore or above) and flexible pay-out options.
2 ULIP scheme.
Unit Linked Insurance Plans (ULIPs) are another necessary addition to your insurance portfolio. They offer the dual benefit of life protection along with market-linked returns on the investment. It is recommended that you stay invested in the ULIP scheme for a longer period of time to mitigate risk and also reap good capital appreciation on it. Part of the premium amount you pay is paid towards high grade securities (both debt and equity) and the remainder is paid towards the policy premium. You can choose the plan tenure basis the insurance provider you team up with and the range of ULIPs they offer.
3 Health insurance.
The rising incidence of stress-linked disorders, high pollution and unhealthy lifestyles all contribute to people falling prey to several serious diseases. These may require hospitalisation, surgery or even prolonged treatment. However, medical treatment is quite expensive and just one hospital visit can wipe out years of savings. You can combat these high costs with a comprehensive health insurance plan, that covers costs of hospitalisation, surgery, treatment and also critical illness treatment.
4 Accident insurance.
Almost every person owns a vehicle today. However, your pleasure in driving your own car or bike is tempered by the poor state of the roads in most parts of the country. Besides, some drivers exhibit poor driving skills and may even be rash with their vehicles. While you can vouch for your own driving skills, you cannot guarantee that other drivers will be as strict about following road rules as you are. There’s a disaster waiting to happen at every corner and twist of the road, and while you cannot always prevent an accident from taking place, you can protect your car and yourself with a good accident insurance plan. You may already be covered under your car insurance plan (buying vehicle insurance is mandatory in India) but accidental coverage is a must to protect against the temporary or permanent loss of income due to partial/total disability arising from an accident.
5 Home insurance.
Your home is one of your most precious possessions. It took a lot of hard work and sacrifices to buy your house and all the things that make it special. However, your house can fall prey to miscreants who break into your house in your absence to rob it. Or the building may be affected by unseasonal climatic phenomena, or riots, or damage by fire. Restoring your house to its pristine glory can cost you a lot of money. So, it is better to invest in a home insurance policy that pays to replace stolen or damaged valuables, as also to restore the house after damage.