Insurance is the most ignored aspect of our financial planning. While investments are the kings of our financial plan, insurance is often overlooked by both the investor and financial planner. Some investors don’t understand the importance of insurance, other investors are confused between the various complicated insurance products available in the market.
No individual or business is immune to risks and liabilities. Insuring yourself and your valuables is therefore a wise and necessary decision to safeguard your liabilities in the event of an unpleasant occurrence to you, your assets and business or to the clients who have invested with you.
Today the general insurance stands for a broad spectrum of coverage and is even tailor-made to fit into the specific requirements of the individuals and businesses.
Types of Coverage
General insurance broadly falls under five categories:
* Individual Policies:
The products that come under individual insurance policies are motor insurance, health insurance, travel care policies, personal accident insurances and loan shields. While a motor insurance policy offers a comprehensive protection to your vehicle against accidents, burglary and natural calamities, a travel care policy goes beyond just health insurance, addressing many travel related issues to make your trip stress-free.
Policies such as health insurance and personal accident insurance help you to a certain level in the event of an illness or accident. You can choose from the different plans these policies offer and the coverage you wish. The premium you need to pay is in accordance with these and factors like your age and health history. Premiums paid for health insurance are eligible for tax benefits under 80D.
A loan cover or loan shield offered by different companies is often clubbed with loans as it takes care of that particular loan in case of the demise or permanent disability of the insured. Loss of job of the insured is also taken care for a stipulated time frame.
