5 Must Have Insurance Plans Nowadays

Published on 19-Oct-2022

Unexpected catastrophic incidents are a reality we can't escape from. So, as responsible people, we need to ensure financial support to cope with those situations. To prevent any harm from unexpected incidents, we should equip ourselves and our loved ones with better insurance policy plans. These plans include health insurance, motor insurance, home insurance, fire insurance, travel insurance, etc.

An insurance cover is a mutual legal agreement between the insured and the insurer company. In this kind of agreement, an insurer has to provide financial coverage to the insured and the members covered in the policy.

Tax Benefits Under Various Types of Insurance Covers

Now by investing your income in various types of insurance policies, you can get a tax rebate and several benefits related to it. The premium which has to be paid for various life insurance policies can offer you a tax deduction of 1.51 lakh under section 80C of income tax 1981.

The premium which is to be paid for all types of health insurance can offer different tax deduction benefits under section 80D of the income tax 1981.

Types of Insurance Plans

According to the needs and expectations of the client, there are sub-categorized insurance covers. Insurance policies protect us from any disaster or danger when we actually need financial backing to compensate for the loss. The importance of preparing for financial stability encompasses future safety measures. Let us understand two types of insurance policies which are mentioned below.

General Insurance Plans:

These plans offer financial coverage to the insured covering all major losses except the death of the policyholder. This includes health insurance, motor insurance, home & travel insurance, etc.

Life Insurance Plans:

These plans include the loss of unexpected and unfortunate incidents such as the death or disability of the policyholder. Under this plan, an insured can get the maximum benefits besides financial protection by investing their savings into the plan. This includes term life, whole life, unit-linked insurance plans, etc.

Following are the 5 Must-Have Insurance Plans that one needs to have nowadays:

To understand some of the essential benefits and offers related to the insurance plan of your choice, let us first look at those plans which ensure stable financial protection and a better sum assured.

Health Insurance

This insurance plan includes the expense coverage of medical care or healthcare. An insurer of this plan pays or reimburses the amount to the insured for treatment of the disease or illness. This plan offers several medical benefits.

Generally, it offers you the following medical benefits which are given below:

1. Hospitalization
2. Clinical bill of post-hospitalization
3. Treatment of critical illness or diseases
4. Daycare Procedures

There are different types of health insurance plans which are given below:

1. Family Floater Insurance: It covers the whole family including the wife, husband, and children.

2. Critical Illness Cover: This plan includes some specialized types of health plans for critical illnesses like stroke, kidney failure, cancer, and some other life-threatening diseases.

3. Senior Citizen Health Insurance: An individual above 60 years, can take the benefits of this insurance policy.

4. Maternity Health Insurance: Under this insurance plan, a wide range of medical expenses are covered for the prenatal, post-natal, and delivery stages. It also includes the protection cover for both the newborn and the mother.

5. Personal Accidental Insurance: A financial cover for any accidental injury, disability, or death.

Motor Insurance

A motor insurance plan offers financing backing during accidental damage to your bike, car, or any other vehicle. This policy mainly includes car, bike, or commercial vehicle insurance.

1. Car Insurance: This insurance plan covers the expenses of any damage to a four-wheeler vehicle.
2. Bike Insurance: A much beneficial insurance policy for individually owned two-wheeler vehicles.
3. Commercial Vehicle Insurance: It includes financial coverage for vehicles used for commercial purposes.

Home Insurance

An insurance policy plan covers all the financial expenses of your unexpected damage to the house, buildings, or physical structure of the home. This plan includes both natural disasters and man-made losses such as robbery, earthquakes, floods, etc.

Let us figure out some common types of home insurance plans:

Home/Structure Building: It protects the physical structure of the house.
Public Liability Coverage: It offers financial coverage against any damage to the third party on the insured residential property.
Burglary and Theft Insurance: Under this plan, it offers compensation for any home burglary and theft insurance.
Contents Insurance: It offers compensation for the loss of furniture, vehicles, and other appliances.

Travel Insurance Plans

This travel insurance plan offers financial cover for any travel causality and accidental harm to us and our loved ones in India or abroad. It ensures a peaceful and comfortable journey. This plan includes compensation for loss of bags or luggage, cancellation of flight, medical emergency, and loss of passport.

Several types of travel insurance policies are mentioned below. Let us consider them one by one.

1. Domestic Travel Insurance Plan
2. International Travel Insurance Plan
3. Individual Travel Insurance Plan
4. Student Travel Insurance Plan
5. Senior Citizen Travel Insurance Plan
6. Family Travel Insurance Plan

Life Insurance Policy

As we have already discussed the meaning and importance of this insurance plan. Now let us consider its different policy plans separately.

Term Life Insurance Plan: Now you can secure yourself and your family members under this insurance plan. It is generally a low premium plan for a specific period of time.

Unit Linked Insurance Plan (ULIP): This insurance plan provides you with the benefits of investment and insurance in a single policy plan.

Whole Life Insurance Plan: This type of insurance policy plan offers financial coverage for the entire life of the insured. This is opposite to that plan which offers policy benefits for a specific period of insurance plan.

Don't wait, Buy insurance for you and your loved ones today.