4 Insurance policies you must have

insurance policies you must haveWhen you want to lead a life of complete peace of mind, you need something better than just luck. Insurance policies provide you a high level of financial comfort in any emergency, at a nominal price. Insurance is such an inclusive product that people from all walks of life with varying premium paying capacities can get a certain amount of protection. here are the 4 most important insurance policies you must have:

Term Insurance:

A pure term insurance policy offers risk cover to the life assured by offering higher sum insurance at lower premiums. This policy is being offered by all Life Insurance Companies and the eligibility of sum insured will be decided by the annual Income of the individual seeking Life Insurance. The proposer will have to undergo Medical Examination at the designated Diagnostic centre, and if the Insurance company is satisfied with the medical reports, the policy will be issued for the required Sum Insured. In case there is an adverse medical history, the insurance company may either impose an extra premium, over and above the normal premium or postpone the proposal for a period of 6 months or even reject the proposal. Since health issues creep in as age advances, it is always better to obtain sufficient Life Insurance cover at an early age so that the premiums are low and policy issuance is hassle free.

Personal Accident Policy:

With the increase in density of vehicles, the most unpredictable event on a road or a highway is an accident and a permanent disability due to accident can destabilize an individual’s life. A Personal Accident policy offers both Death and Disability (Permanent as well as Temporary Total) for a nominal premium.

Health Insurance:

There need not be very big reasons for falling ill – a mosquito bite can send us to hospital and we can be handed over a fat bill at the time of discharge. Health issues pop up suddenly and without an appropriate Insurance cover anyone will land in financial trouble. As such, everyone must have appropriate Health Insurance coverage.

Pension Plan:

As per the latest Census, the average life expectancy is 66.21 years and with advancements in Medical Research, it is likely to increase further to 70-75 years in coming years. Medical and living expenses increase as years go by and everyone will have to create provisions to continue their present style of living. A deferred Annuity Plan, wherein the Maturity Value of the Policy along with the eligible bonuses is automatically converted into Pension, is always advisable so that everyone is financially independent after retirement.

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