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5 types of Insurance that everyone should have.

Paying too much for insurance could leave a hole in your pocket while paying too little won't give you enough coverage to fulfill your financial needs. Know which insurance policy you should have for yourself and your family.

By: Sachin Telawane | 
Read Time: 3 minutes, 42 seconds | 
Last Updated: 23-02-2022
5 types of Insurance that everyone should have.
With over a billion people, there are people who still have no knowledge about what insurance is and how beneficial it is to have one. While some are of the perception that it is worthless paying premiums as nothing ill will happen to them. Having insurance is all about transferring the unforeseen financial risk. Without insurance, you might have to face financial crunches while paying off the bills. 

Insurance is one of the best financial planning tools that not many know about. One has to pay a certain amount which is known as “premium” to have protection against any uncertainties happening in life. Having an insurance is important, but moreover understanding what type of insurance is required and the coverage amount with this insurance is vital. Paying too much for insurance could leave a hole in your pocket while paying too little won't give you enough coverage to fulfill your financial needs. Know which insurance policy you should have for yourself and your family.

Here are some of the most necessary types of insurance that every individual should have:

#1. Life Insurance
Life insurance is one of the best tools for financial planning that one must have in their bucket. It provides your family with financial assistance in case of your sudden demise. Life insurance protects the people that are financially dependent on you in your absence. It may not cover the emotional loss of the person but definitely will cover the financial dependency. Term insurance is the most commonly opted life insurance tool as well as for tax saving purposes. 

#2. Health Insurance
Health insurance covers your necessary hospitalization cost, medical costs, from doctor’s appointments to various surgeries. Along with coverage for illnesses and injuries, health insurance covers preventative care, such as annual check-up.
Health insurance is the need of the hour looking at the current scenario. The hospitalization bills are touching skies and arranging funds might be not feasible. It is a must to have sufficient health insurance for yourself and your family members. There are different types of health insurance plans available in India, such as:

1) Individual Health Insurance: Here a single person, who is the policyholder, is covered. 

2) Family Floater Insurance: In such a policy, the entire family of the policyholder is covered. Blood relations such as spouse and kids are considered under family. 

3) Senior Citizen Health Insurance: These types of insurance plans cater to all individuals above 60 years of age. One can opt for individual as well as floater policy under the Senior Citizen plan.

4) Group Health Insurance: This type of health insurance is usually offered by an employer to its employees.

#3. Personal Accidental Insurance
Personal accidental insurance is the least opted insurance, especially in India. This is due to the lack of awareness of the various benefits accompanied with this insurance. When it comes to the cost of premium, this insurance has the least premiums against an exclusive range of coverage. The nominee of the policyholder or the policyholder themselves is entitled to receive the coverage amount in case of death or disability respectively. 
The percentage of compensation depends on the type of disability such as Permanent total disability, Permanent partial disability and Temporary total disability the policyholder goes through at the time of accident. 

#4. Critical Illness Insurance
Critical Illness Cover is a specialized type of health insurance that offers coverage against various life-threatening illnesses like stroke, heart attack, kidney failure, cancer, and a few others. Policyholders get a lump sum amount on diagnosis of any of the mentioned critical illnesses according to the policy documents. You can know more about critical illness insurance by going through this article.

#5. Home Insurance
As the name says, it is an insurance for your home, house property, structure against any physical damage or destruction. Home insurance covers your property against any natural calamities such as fire, earthquake, flood or even man-made incidents such as robbery. We can not control natural forces from destruction of property, but we can surely insure one. This is why having home insurance is must for every individual.  

While looking at all of this, thinking of your loved ones, it is ideal to have these policies in your bucket at the earliest. Visit MyInsuranceClub to compare and buy insurance and choose the plans that fulfill your requirements. 
Our trained experts will guide you through the process and help you choose the best plans.

Sachin Telawane
Sachin Telawane is a Content Manager and writes on various aspects of the Insurance industry. His enlightening insights on the insurance industry has guided the readers to make informed decisions in the course of purchasing insurance plans.

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