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6 types of insurance policies you should buy in 2020

Insurance policies can be a basic necessity in your life. The primary idea of every life insurance policy is to protect your loved ones financially from the eventualities such as death. Since you might be unable to control the unpredictability of life, you should buy insurance policies to safeguard your future financially during an unfortunate event.

There are multiple life insurance products that have penetrated in the Indian market today, many of them available as online investments. While many of the insurance products can be pure protection plans, the rest of them can be a few of the best investment plans in India. Since there is a diverse range of products to select from, let’s go through the shortlisted six life insurance investment options in detail:

  1. Unit Linked Insurance Plan (ULIP)

A ULIP plan is a type of investment option, which can be a dual-benefit financial product. It can provide the benefits of investment and insurance under a single integrated plan. With a ULIP plan, you can financially secure your loved ones from unfortunate events as well as diversify your investment portfolio based on your risk appetite. A ULIP plan is a flexible, transparent, and affordable solution of investment.

  1. Term insurance

A term plan is a pure protection plan that can provide a life cover for the safety of your loved ones. It acts as a safety net that maintains the standard of living of your family in your absence. Earlier, a term plan would only offer death benefits for the financial well-being of the members of your family. Today, you can receive death benefits as well as survival benefits under term plans.

  1. Health plan

When you grow older, you are more likely to be prone to health conditions like kidney failure, cardiovascular diseases, cancer, and so forth. Since the severity of such diseases can be high, you should treat it immediately. If you have inadequate funds to cure the illnesses, you might tend to ignore the treatments. Under such a scenario, a health plan can come in handy to cover your medical as well as hospitalization expenses. Moreover, it can provide cashless treatment if you avail the facilities provided by the network hospitals of your insurer.

  1. Travel insurance

Many of you might be under the wrong notion that your trip to an unknown destination can go as planned. However, the chances of uncertainties can be high when you set foot to an unknown land. The most common travel mishaps can be loss of baggage or passport, flight delay or cancellation, and so on. Such unexpected events can be covered under travel insurance. It can help you to cover any medical or travel emergency while you are traveling within or outside the country.

  1. Motor insurance

As per the Motor Vehicles Act, 1988, having third party insurance for your vehicle is a must. Whether you own a bike or a car, you should compulsorily purchase motor insurance to secure your vehicle from road mishaps such as accidents, collisions, burglary, and so on. Although third-party motor insurance is a mandate, you should buy comprehensive motor insurance. While the third-party insurance can cover the damage of the opposite party involved in the accident, comprehensive coverage can cover your own as well as third-party damages.

  1. Endowment plans

An endowment plan is a combination of savings and insurance. Under an endowment policy, you can save a specific sum of money every month to build a substantial corpus in the future. When the endowment policy matures, you can receive the guaranteed payout to meet your financial requirements. If anything happens to you during the on-going tenure of the policy, your nominees can obtain the payout.

To conclude, the above-mentioned options are the top six types of insurance policies, which are usually chosen by people due to its benefits. Since the primary of all these investment plans is financial security, you should consider your financial goals, compare various plans, and pick a plan based on your preference.

 

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
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