Modern life is in a paradoxical situation where technological advancement has prolonged human life but has also come with a series of escalated costs and unforeseen challenges. To counter these, a number of insurance policies have mushroomed in the insurance sector. Of these, there are three top policies that are a must-have for your list. These are --motor vehicle insurance with a personal accident cover clause, health insurance and term life cover.
In today’s scenario, buying an insurance cover is not just a necessity for anyone over 30-35 years of age bracket. In fact, if you buy a policy at a younger age, you stand to gain more benefits, in the long run. Traditionally, life insurance policies have always been viewed as a tax saving option rather than a buffer to any risk.
Everyone is aware that buying a car insurance cover is mandatory under the Motor Vehicle Act, 1988. But it’s a good idea to opt for a policy that has an add-on Personal Accident Cover. This means any accident, can not only inflict physical trauma but also impact hospital bills and in some cases even earning ability. The vehicle owner pays a fixed amount or a premium to the insurance company in the form of a policy for a stipulated time period. In an event of a mishap, the insurance company gauges the damage and depending on the assessed value of the vehicle, pays compensation to the client. It covers the following:
• Death due to an accident
• Permanent and/or total disability in an accident
• Loss of both limbs / one hand and one foot / loss of limbs and eyes / complete loss of eyesight, speech
• Any permanent but partial disability (subject to limits)
• Temporary and total disablement - Fixed sum will be paid (based on the sum assured), weekly for a fixed tenure
With an increase in lifestyle diseases and some an upsurge of deadly diseases, opting for a health policy is a wise choice, which many Indians are realizing. It gives you protection against escalated medical & surgical needs and is a way of ensuring that you can afford proper medical care without any stress. Like any other policy, here too a policy holder pays a certain premium to the insurance company. Beside tax sops, a lump sum is given in event of a critical illness or death and it also entails convalescence allowances, ambulance & attendant services, hospital costs like room rent, prescription drugs, lab tests, services and devices that aid your recovery.
'Term' life insurance plan is yet another security cover that will benefit not only the policy holder but the next of kin, in case of his untimely death. This type of cover is cheaper and more beneficial for the nominees and gives a lump sum in case of the policy holder's death. It guarantees you peace of mind that your kin will be taken care of, after your death.
• The main aim of this policy is to ensure financial security of your loved ones after your death. It is not an investment.
• A life insurance policy gives you an edge when it comes to saving on tax.
• A life insurance policy guarantees you peace of mind that your kin will be taken care of, after your death.
While buying these polices always read the fine print and compare existing policies --premium, benefits, disadvantages, sops, terms and conditions--to see what suits your needs the best. It's always best to buy an insurance policy online as it saves time, is cost effective & is a transparent option.