5 Types of Insurance That Everyone Needs

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types of insurance india

We bet many of you don’t even know the names of these 5 types of insurance that everyone needs. There are many insurance options for you to choose from, but you must always make a well-though decision, as a very high costing insurance can drain your pocket really fast. A good coverage is important, but it should always fit your pocket size. So, how much insurance do you have at present? And how do you know what insurance are absolutely necessary for you?

The type of insurance you need will vary with your requirements and the assets you own. To know the 5 types of insurance that most people need, read on.

  1. Health Insurance
  2. Life Insurance
  3. Automobile Insurance
  4. Disability Insurance
  5. Homeowners or Renters Insurance

Health Insurance

Health insurance is a type of insurance that everyone should have, as it keeps you safe against unexpected medical bills. It covers all the necessary medical costs, right from appointment of doctor to cost of surgeries. It not just covers the injuries and illnesses but also the preventative care. Even some of the health insurance policies offer full body check-ups and tests based on the premium you have selected.

Why do you need a health insurance?

Out of all the five mentioned, health insurance is the most important insurance that you must buy. Want to know why do I need a health insurance? Here is the answer, Having a health insurance will prevent you from falling into a medically occurred financial hardship. There are many Insurance policies for health that you can select one from, offered by Star Health, ICICI Lombard, Bajaj Allianz and others.

When buying a health insurance consider these:

  • If you are young and single, you need not take health insurance that costs a bank to you, you should go with a starting plan. If you are a person with a family, buy health insurance family plans, and check it accordingly for other conditions.
  • Health insurance premium is another important factor. Purchase an insurance that fits into your budget, not hits it.
  • Check all the coverage that health insurance offers, as they differ with price.

Life Insurance

Life insurance is another important insurance that you should plan on buying. It covers costs linked to dying; it can also pay off your debts after your death. Life insurance is a must for a family man, who is the sole breadwinner of his family, as after him this money will help the family he will leave behind. There are many types of life insurance offered by insurance companies, so choose wisely.

Why do you need a Life Insurance?

Mostly people buy health insurance to support their family even after they leave the world. And this is the main reason that people buy life insurance. But it does come with a lot of terms and conditions that you must check before buying.

There are many conditions, when your primary family member can receive the benefit, when they cannot. If you are unmarried, you don’t need a life insurance, go for health insurance that’s the one you must have.

Automobile Insurance

No matter what vehicle you own, you must get it insured. Even it has been mandated by government to get your automobile insured. There are two main types of insurance for car including first-party insurance and third-party insurance. Choose type of insurance for your car and stay safe from the sudden damage. It is not just about the cars, your two-wheelers should also be insured. Both first-party and third-party insurance are available two-wheelers.

What does your Automobile Insurance cover?

Different types of automobiles insurance offer different coverage, in India only two types of car insurance are offered:

  • Third-Party Insurance- It is a basic vehicle insurance that along with bodily injuries/ damage(s), covers the loses caused to third-party property/vehicle due to the insured vehicle.
  • Comprehensive Insurance- The comprehensive vehicle insurance offers complete insurance coverage. It covers own damage to the insured vehicle, as well as the third-party liability.

Why Do You Need Automobile Insurance?

If you own as care you need a car insurance, if you own a motorcycle you need an insurance for it. If you are driving uninsured, you are taking a big risk, buy an automobile insurance today. Even if you are buying a new car you need to get it insured. Automobile insurance saves you from sudden financial shocks that an accident can bring in.

Disability Insurance

Disability insurance, also known as disability income insurance, an insurance policy that covers an individual against the disability conditions that might occur in future. It could be a disability due to unexpected disease or accidents. Such events can impact the life of that person to an unimaginable extent. A disability insurance policy provides the financial assistance to the person insured. The disability insurance makes money available for treatment and also is a financial help to the person’t family

Why You Should Buy Disability Insurance?

Many people still do not understand the importance of buying a disability insurance. You make many investments, so why not make a little investment to this insurance that might save you against any such future condition.

  • Disability insurance cover both permanent and temporary disabilities.
  • They keep you financially safe in an event that leads to disability.
  • Depending on the disability the insurance will provide long-terms or short-term disability benefits.

Homeowners or Renters Insurance

Homeowners or Landlord Insurance is a type of home insurance that most of us don’t know about. This insurance keeps home owners safe from any financial losses that might incur due to rental properties. The landlord insurance policy also covers standard fire, malicious damage, theft and allied perils.

Renters insurance is also called renters or tenants insurance, in simple words we can say that it is like a home warranty. It is a cover for people living in the rented houses.

Wrapping Up

Here I have discussed 5 types of insurance policy that everyone should have, where they have options to choose the types of insurance coverage. I have already included what these insurance are, why they are important and what factors to consider when buying.

Out of the 5 discussed how many insurance do you have? Do you want to add anymore important insurance to this? Drop it in the comments section below.

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