6 types of insurance policies you should buy in 2020

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

Multiple life insurance products have penetrated the Indian market today, many available as online investments. While many insurance products can be pure protection plans, the rest 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:

6 types of insurance policies you should buy in 2020 1

Unit Linked Insurance Plan (ULIP)

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

Term insurance

A term plan is a pure protection plan that can provide a life cover for your loved ones’ safety. 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 members of your family’s financial well-being. Today, you can receive death and survival benefits under term plans.

Health plan

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

Travel Insurance

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

Motor insurance

As per the Motor Vehicles Act of 1988, having third-party vehicle insurance is necessary. 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, etc. Although third-party motor insurance is mandated, you should buy comprehensive motor insurance. While third-party insurance can cover the damage of the opposite party involved in the accident, comprehensive coverage can protect your own and third-party damages.

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. Your nominees can obtain the payout if anything happens to you during the policy’s ongoing tenure.

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

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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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