Last Updated on September 2, 2021 by MoneyVisual
When the concept of purchasing insurance arises, there are a plethora of options available on the market today you might not have any idea which basic insurance policy is necessary or which is the best policy for you.
It’s very important to get covered under the basic insurance policy because it helps you when you need it more like in a financial emergency. But there is a concept why you should pay too much to get covered all your need for insurance.
Sometimes paying too much for basic insurance is harmful because it takes your emergency funds as well as your retirement savings.
Here we are going to discuss five basic insurance policies everybody needs.
1. Health Insurance Policy
Health insurance is very important for individuals when unnecessary health issues arise then health insurance will be beneficial during hospitalization.
Types of Health Insurance
- Individual Health Insurance Policy: These types of health insurance policy specially designed to cover an individual’s need for health insurance
- Senior Citizen Health Insurance Policy: Under this health insurance policy people aged from 60-75 and above are considered. Senior citizen health insurance sometimes covers pre-existing diseases also.
- Personal Accident Health Insurance: It covers an individual’s personal accident expenses during hospitalization.
- Family Health Insurance Policy: In this policy whole family member is covered and the coverage amount will be divided among all the family members.
- Critical Illness Insurance Policy: Critical illness insurance covers some of the critical diseases like diabetes, heart attack, kidney failure, stroke, etc.
- Cancer Insurance Policy: This insurance policy specially designed to give protection against cancer.
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2. Car Insurance
Car insurance gives you protection from unexpected accidents and it also covers hospitalization expenses sometimes.
Types of Car Insurance
- Liability Car Insurance: It gives protection against property damage and bodily injury
- Personal Injury Protection: Hospitalisation expenses related to driver and passengers are being covered by this insurance.
- Comprehensive Car Insurance: It gives protection against accidents and covers hospitalization for driver and passengers.
- Third-Party Car Insurance: Damage done to the third-party during an accident can be covered in this type of insurance.
3. Home Insurance for Homeowner and Renter’s Insurance
Home insurance or homeowner’s insurance covers form theft, fire, and man-made disaster. Home insurance also gives protection to household things or the most valuable asset. Renter’s insurance covers you from theft to personal belongings in a home.
Home insurance or renter’s insurance gives peace of mind. In fact, sometimes home insurance does not give full protection to all belongings. You need to take extra cover or add-on to the home insurance policy if you want to cover your home from flooding, fires, earthquakes, and other disasters.
4. Life Insurance or Term Insurance
Today nobody necessarily wants to take life insurance but it is very important if you want to protect your family when something unexpected wrong happened to you. Suppose you are only the earning member of your family then it essential to take life or term insurance to protect your family from a financial emergency.
Life Insurance protection is very important to help your family to come up with a bad situation or financial emergency. It is good to have a life or term insurance policy.
5. Disability Insurance
Disability insurance is similar to life insurance it is a source of income during the time when you are not able to work. As we know many people are become disabled at some points, if they have this insurance make some sense for individuals.
Disability insurance sometimes covers temporary, partial, permanent, or total disability. In fact, we don’t even know in the future when something went wrong than disability insurance can be really cheap.
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Few Unnecessary Insurance Plans
- Flight Insurance: As we know flying is one of the safest ways to travel.
- Life Insurance for Kids: Life Insurance gives protection the lost income but kids have nothing
- Accidental Death Insurance: It is better to skip this insurance because it’s impossible to collect.
- Disease Insurance: A standard health insurance can be a better option than disease insurance
- Mortgage Life Insurance: A life or term insurance policy can be better options