Mention insurance and chances are most people will think of life insurance and stop right there. Yes, life insurance is important and necessary to create a financial cushion for your dependents. However, equally important are insurance policies like health, personal accident, motor insurance and a cover for your home. The upside of all of these forms of insurance is that they address the financial challenges you may face when you are alive.
Rising healthcare costs, spreading health hazards could severely affect your finances. Take for instance the prevalent dengue and chikungunya scare. Hospitalisation can set you off by several thousand rupees for each day you spend in a hospital. Things could get worse if you are detected with high blood pressure, diabetes or a heart ailment. Each of these has long standing impact on your health. Many require hospitalisation for treatment and it all costs, not to forget the possibility of you not functioning at work as you do today when you are healthy. With a standard health insurance in place, you can rest assured that the financial implications are taken care of and your financials are not dented.
When you look at motor insurance, the standard liability-only cover, popularly known as third party insurance, is mandatory to ply your vehicle on the roads. However, you also get own damage cover and cover for other risks like fire and arson. There are special covers like zero depreciation and engine protection which further enhance the scope of insurance.
One of the most expensive possessions for Indians is their home. However, very few think of a householder’s insurance which covers the structure as well as the contents. Yes, the risk of a house being impacted by fire or floods seems farfetched; however, do not forget that you may face a deluge or even flash floods as was the case in Chennai in December 2015 or Hyderabad or Gurugram in recent months due to sudden downpour.
In similar vein is the personal accident cover. While death is loss of life which may be covered by your life insurance policy, but accidents leading to disability, which could be partial or total and temporary or permanent, the financial implications could result in a disaster. Do not treat these hazards lightly; the scope of general insurance policies is such that it can help you ensure that you are not heavily impacted financially.
