6 Types of Insurance Policies to Buy in 2016

So far we all know the importance of insurance in our every day life. But do you know how many types of insurance policies you can buy if you want to secure every aspects of your life? There are various types of insurance available, but in this article I will share the most common insurance policies purchased by majority of people to meet their insurance need. This is obvious that, you may not need to buy every insurance policy as this will increase your insurance expenditure. And there is no point to buy an insurance which is not related to one’s life style.

Types of Insurance Policies in India

The way our life has changed in last couple of decade, the need of various types of insurance has increased. If you plan or brainstorm carefully, then you will find that the traditional insurance plan will not cover your every need on emergency. In such a case, for different needs you have to be ready with adequate and proper insurance plan to avoid financial problems.

Why insurance is important to an individual

Life Insurance: This is the most popular and one of the old types of insurance plan. The simple concept is, in case of your unfortunate death, your family will get some lump-sum benefits to handle the financial situation and also to plan for future. But there are various types of life insurance polices as well. The actual purpose can be served with a pure term insurance plan, but many people use insurance products to save money and also get income tax benefits.

Property Insurance: As the name suggest, this kind of insurance will help you to protect your house or flat or apartment from any kind of disastrous like fire, earth quake etc. Make sure you you go through the terms carefully and know what are the natural disastrous covered in your policy. The best time to take this insurance is while applying for home loan in India.

Vehicle Insurance: Car insurance or two wheeler insurance is another mandatory insurance that we can’t avoid, off-course if you bought a car or bike. Most people think that they are buying a vehicle insurance to get rid of traffic police inspection only. And driven by this perception, most of the time they don’t renew their car or bike insurance policy. You should know the importance of a car or bike insurance and renew the easily online itself. Try to go for 2-3 years duration to save money on premium payments.

Medical/Health Insurance: Another must to have insurance policy of current time. The medical expenditures are increasing like anything and in such a case it is not possible to manage money for any kind of critical illness. Personally I have used health insurance plans couple of times as my parents were through with various major operation which cost me on avg 3-4 lakh / operation. Thanks for the health insurance policy under which I have covered my entire family.

Travel Insurance: You might forget the incident happened with the Malaysian airlines which is not yet discovered. Now those cases will not cover under any insurance policy, besides anyone has done exclusive travel insurance policy. That means whenever you are planning for a long trip or travelling abroad with your family or alone, make sure you have done your travel insurance. If you are going on-site from your company then you might have noticed that your company has provided you the travel insurance document. This is mandatory for any corporate travel, but most people neglect the same when they plan a trip on their own.

Personality Accident/Disability: This insurance plan is mainly for those people who are involve in such kind activity or job where there might be a chance of getting accident or some mishap. E.g. people working in coal mines, construction site etc. By availing this insurance, you can get cover till the time you recover and get back to work. Not only that, you will also get some money even you are permanently disable.

So, these are few types of insurances I found very much linked with anyone in our country. Try to analyse your lifestyle, work type to choose the insurance policies to secure your and your family’s future.

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About the Author: Santanu

I'm Santanu, co-founder of mydailylifetips.com. Love to read & write about Life hacks, How to guides, Money Saving tips and travel stories on this space. Checkout my first Hindi YouTube Channel on Personal Finance Guide.

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