Insurance is not limited to health and life. Experts point out that to be properly covered against any emergency, one should opt for a few additional insurance policies as well as life and health insurance plans, depending on their needs.
Most have started taking insurance seriously, especially after the pandemic, to be properly protected against any financial emergency.
Supriya Rathi – Full Time Director, Anand Rathi Insurance Brokers said: “COVID has torn the protection system at the personal level for any individual wide open. A deep dive into an individual protection needs assessment would leave someone in awe of the crying need for a systematic way to protect their financial losses.
That said, insurance is not limited to health and life. Industry experts point out that to be properly covered against any emergency, one should opt for a few additional insurance policies as well as life and health insurance plans, depending on their needs. Before COVID, the most targeted insurance coverages were life and auto insurance, and to some extent health insurance.
Here is a summary of the “Must-have insurance covers” in a personal portfolio:
Term Insurance – Every earner with dependents must have this policy minimum as they must meet liabilities after their untimely death. Rathi says “Vanilla term insurance from a reputable life insurance company with higher sum insured, meets all needs.”
Health Insurance – No need to add more why this one. Experts suggest that the structure based on affordability and need is to take individual minimum sum insured policies for each family member. This is followed by a floating family policy and, if necessary, an additional top-up on top of that. “The structure responds to the increase in medical cost with age. If you’re concerned about the upfront cost, at least buy a family float policy,” Rathi adds.
Personal Accident – One could always look at Pradhan Mantri Suraksha Bima which helps to deal with any financial loss to the family due to untimely accidental death. Apart from the Pradhan Mantri Suraksha Bima Yojana 2.0 lakhs sum Assured for which Rs 12 is debited from the bank account every year, individuals are covered by their A/c savings. Debit/credit card as well. However, note that these come with conditions, so experts say it is best to have an individual personal accident insurance policy, depending on one’s lifestyle.
Home Insurance – Whether you’re renting or in your own home, protect your building and its contents against fire, burglary and natural perils. Rathi points out that the new standard policy of Gruh Raksha has good streamlined features. Opt for a longer term policy and try to coincide with anniversary/imp dates to remember when the policy renews.
Cyber Insurance – Data is the new unit of the economy. With our lives interconnected through the Internet as soon as we wake up, protect our valuable data and information on various devices such as mobile phones, desktops, handhelds, cloud storage. Therefore, opt for Individual Cyber Insurance coverage protecting at least to the extent of funds from all bank limits and credit cards.
Car insurance – Whether it’s 2 or 4 wheelers, in addition to the mandatory liability insurance, experts say you need to have comprehensive car insurance to be properly covered. Also make sure you have the compulsory civil liability insurance renewed each year.
Moreover, Rathi adds, “Depending on the cash flow assessment, one can either line up most of the above insurances within a month to complete the whole protection process for the year of a period. ”
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