Insurance can do magic. Selection of right insurance policies not only helps you tackle severe situations that cost money and also, helps to secure personal financial plan for self and family. Below are the 5 must have insurance plans for an individual to select wisely depends on there status and requirements. Success of an insurance policy selection entirely depends on identification of your exact requirements. Prior to apply any, a person should do a self assessment to identify his/her present and possible future status, dependent requirements to select right policies. Below mentioned 5 insurance policies are very specific in its kind and combination of any or all of these are highly recommended to individuals depends on his/her situation.
1. Term policy – One of the most required and friendly policy for an individual who have lots of responsibilities. If you are the only bread winner in your family and worrying about the future of your dependents in case of anything bad happening to your life, of course, term policy is an excellent option to meet all your requirements. Term policy offering huge life cover with comparatively cheap and affordable premium. Taking maximum term by contacting multiple insurers to identify the best product is a good idea. A thumb rule is, choose a term policy with life coverage equal to 6 times of your annual salary.
2. Health Insurance policy: A must required policy for individuals to insure him/herself and family members through family floater policies available with cheap premium and more facilities. Hospital expenses are the major culprit to spoil your financial plan in a great extent, having a right medical policy is highly appreciated. Reading the features and compare the same with other insurers will give exact idea with what policy you need to select and go.
Remember these points: Cover all your family members with family floater, select the best insurer with excellent service record, opt cashless plan with networked hospitals, contact various insurers to identify the features as well as the cheap premium availability. Even if you have an employer sponsored health policy, it is better to select your own policy to meet any requirements that happening between the period of leaving a job and getting another one. You should be asked and well aware about the possible discounts on future premiums in case of no claim.
3. Accident insurance: Here, I have to crack a myth, most people considering that, subscribing an accident policy only helpful to those who have a vehicle and any possible accidents that can happen in the road. That is not true. An accident policy not only intended to deal with road accidents but, any kind of accident that can harm your physic, whether it is visible or not visible, can be covered under this policy. You have option to choose cover for death, partial disability, total disability both temporary and permanent depends on your requirement.
Remember to contact multiple insurers to identify the best available policy in the market in the sense of maximum facilities as well as product features. Select all required covers depends on your needs and pay premium as per that. Many policies have option to add or avoid any categories later depends on your future requirements. Remember to cross verify your policy certificates once after receiving the same.
4. Motor insurance: If you have a vehicle, it is highly recommend selecting a proper motor insurance coverage. Such policy should include third party liability cover to protect you from any incidents that cost large money from your pocket. Compare with any policies mentioned above, this is the only policy required proper negotiations to get right premium and facilities. Prior to select a company, you are required to contact multiple vendors to identify the best in the sense of policy features as well as cheap premium. Remember, motor policies providing a facility to transfer your no-claim bonus to a new vehicle. Remember, the premium of this policy entirely depends on the age of driver, his back ground and the age of vehicle. You can negotiate for a possible discount without compromising any added features or clauses.
5. Home Insurance: Your home probably your big investment in life. If you had owned a new home, it is better to protect with proper home insurance policies. Remember, a home policy not only protecting the home from any events like natural calamities or earthquakes but, you can even select protection from burglary, protection of valuables, electronic items or any other consumer durables. Contacting various home insurers will give you exact idea on various features available with such policies as well as the add-on features upon your additional requirements. You have an option to negotiate and get discount prices due to the competition on this space.
Understanding various independent features like Fire Protection policy and Householder package policies enable you to take wise decisions by adding all required features when choosing a home policy. You also highly required to compile a list of belongings to identify which all required to protect through a policy as well.
In general, it is important to have some preparations to identify your exact requirements prior to applying any or all of the above policies. You should know and well aware why you are doing such and how this will worth to you or your dependents. Well vision and preparation prior to applying any of these policies help you to select the best and add value to your money with little possible error on selection.
Sherin Dev is the owner and editor of investinternals.com and moneywithmoney.net blogs..