As the popular saying goes- life is full of surprises, we all eagerly wish for surprises. But not all surprises are wished for. While some surprises are pleasant, some can leave you devastated. Especially, when such situations demand sudden financial expenditure.
Having an insurance policy to safeguard your finances in such cases is, therefore, an indispensable part of the modern lifestyle.
With that being said, it is important to know what are the types of insurance policies and when do you need one. Here, in this article, you’ll find some of the common types of insurances and when do they serve the intended purpose.
1. Liability Insurance
One of the most popular policies, liability insurance allows the insured to clear off any undue claims that are caused due to negligence. As the name suggests, this policy covers any liabilities of the insured, in concerned situations. For example, you may cause an injury to someone unknowingly. If the injured person decides to file a personal injury claim against you, you may need to compensate for their loss and suffering. This is where liability insurance can help you protect your finances, without having to lose any belongings or personal assets.
2. Motor Vehicle Insurance
Another common insurance cover is motor insurance. In fact, whether you feel the need for it or not, motor vehicle insurance is actually mandatory if you own a vehicle. Motor insurance not only protects your vehicle but also covers the damages caused by your vehicle to others. You already know how expensive it can be to buy and maintain a vehicle. Let alone getting it repaired in case you meet a road accident. Having motor insurance can cover up the repair costs for any damages that your vehicle may incur due to a crash.
3. Life Insurance
The particular case of loss of life is covered under a permanent life insurance policy. The insured pays an annual premium in order to receive an assured principle amount either when the policy matures or if there is a sudden demise of the insured person. You must be wondering, why should you get a life insurance? Well, honestly with a life insurance policy in place, you can rest assured that your family doesn’t suffer due to a lack of finances when you are not there to take care of them.
4. Medical Insurance, a.k.a. Mediclaim
Medical insurance covers specifically the medical bills and expenses. Depending upon various factors, such as your age, sex, medical history, and many more, the insurer decides the premium to be paid. This is the best option if you are looking forward to avoiding any sudden medical expenses. And we all know how expensive could be medical treatments.
5. Estate Insurance, a.k.a. General Insurance
Specially curated for safeguarding your immovable property, including your estate, land, and other assets, general insurance policies are also referred to as estate insurance policies. These are beneficial in covering up the damages caused due to any unforeseen calamities. For example, your house may burn down to ashes in case of an accidental fire. If you have insurance, you can rest assured that you don’t burn up holes in your pocket as well, when repairing and reacquiring all the assets.
With appropriate knowledge of these policies, you can make the right choice and avoid all the financial stress in the future.
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