Types Of Insurance Policies That You Can Buy

Should I get an insurance cover? This is a question bothering most millennials in today’s day and age. But this also brings us to another question. Considering the various types of insurance covers available today, does one need to get everything insured?

Buying insurance is a way of hedging potential risks at a cost. This cost is termed as the premium of the insurance policy. Insurance companies further invest such premiums in various financial instruments available in the market so they can honour the claims made by the insured.

The Indian market is flooded with various types of insurance that one can buy. It can be for your life, general well-being, vehicles, for the travels that you plan, and much more. The right combination of insurance policies can help you stay worry-free!

Let Us Have A Look At What Different Types Of Insurance Policies

Health Insurance

Considering the rising medical costs,getting a health insurance for yourself is an absolute necessity. From the various types of health insurance that you come across, all of them have a common objective, which is to provide a safety net for you and your family in sudden and emergent times of need.

Some types of insurance policies provide a reimbursement of the expenses whereas some provide all-inclusive health care facilities to the insured. The insured can get his medical expenses reimbursed or receive a fixed sum on the occurrence of an included disease. Preventive health check-ups, daycare facilities, and pre- and post-hospitalization costs are some benefits included under health insurance. Some insurers also provide maternity benefits and accident covers along with coverage for pre-existing medical conditions.

You can avail deductions in your return of income under the Income Tax Act, 1961. Family floater health insurance, critical illness health insurance, senior citizen health insurance, group health insurance are some types of health insurance that are available in the Indian market.

A health insurance policy not only helps you protect your savings but also has added benefits like avail quality treatment from the list of network hospitals. A health cover also helps you insure the changes in your lifestyle while providing an insurance cover for lifestyle-related diseases such as diabetes, cardiac problems etc.

a. Indemnity Health Insurance

Indemnity health insurance or commonly referred to as ‘fee-for-service’ is a traditional form of health insurance. The insurance company pays for the medical expenses incurred subject to specific terms and conditions varying among different policies. Costs incurred are reimbursed depending on the limits specified in terms of your policy. You can select the medical professional of your choice along with the various treatment facilities available as per the health insurance policy. It is imperative to know about deductibles and co-payment clause that may be attached tour indemnity plan. A deductible is where the insured pays a pre-decided amount at the time of claim. In contrast, under co-payment, a certain percentage of hospitalization expenses are borne by the insured. Indemnity plans are best suited for those who like to enjoy the freedom associated with selecting the medical facilities and other services.

b. Fixed Benefit Health Insurance

Fixed benefit health insurance does not indemnify the insured for the medical expenses so incurred. Instead, it just pays a fixed amount (the amount of sum insured) when the ailment strikes. Such diseases are predetermined at the time of availing the health insurance plans. Fixed benefit health insurance help in bridging the gap between your regular insurance plan and those ailments not covered by it. You can opt for a fixed benefit health insurance along with regular health insurance to achieve blanket protection for all your medical needs. Availing critical illness insurance like cancer insurance or heart insurance for pre-existing medical conditions offers all-round protection along with an added peace of mind. It removes the sub-limit that most policies have generally mentioned in the fine print, covering non-medical expenses like travel and nutritional requirements along with loss of livelihood during treatment and recovery stage. You surely have important things to worry about when your loved ones are undergoing medical treatment.

What Is A Motor Insurance?

Accidents, major breakdowns, general repairs, and the like are covered under motor insurance depending on the types of insurance policy purchased.

What Is A Travel Insurance?

It covers all contingencies like lost baggage, trip cancellation, medical assistance in transit, and other mishaps that might take place while travelling either internationally or domestically.

What Is Life Insurance?

Under life insurance, the insured pays a premium to the insurer to receive a fixed amount, known as the sum assured, to a nominee after their demise or after a pre-defined period.

Among these, health insurance plans should be first on your priority list because health is everything. Rising medical costs are one of the most heavy expenses that an individual will have to bear in today’s world. Check out health insurance articles on topics like mediclaim vs health insurance, chronic health problems, premiums etc. and stay informed before you purchase insurance policies.