5 ESSENTIAL TYPES OF INSURANCE

There are five vital kinds of insurance—health, life, motor, home and disability

HEALTH INSURANCE: Often available through employers, health insurance keeps you covered when it comes to any expected or unexpected medical expenses arising from hospitalisation. It is advisable to take a health insurance personally than depend on one provided by the employer. The premium charges on this policy depend on coverage, age and existing health conditions.

LIFE INSURANCE: Payable when you die, it allows beneficiaries, such as your surviving spouse, dependants or children, to get funds they can use to manage their lifestyle expenses. It can also address outstanding debt and bridge financial goals that may be impacted after your death. Life insurance costs vary, depending on factors such as age, health, gender and type of coverage.

MOTOR INSURANCE: If you have a car or bike, motor insurance becomes mandatory. It addresses accident risk associated with third party liability. The policy is a contractual agreement between you and an insurance company that protects you against financial loss resulting from theft or accidental damage. Motor insurance costs vary, depending on the vehicle cost and the location where the vehicle will mostly be operated.

HOME INSURANCE: With home insurance, you can protect your home against any disaster-related damages such as fire, vandalism or theft. This policy doesn’t automatically cover damages due to calamities such as earthquake or flood, but one could explore the same if the house is in a vulnerable area. Home insurance costs vary, depending on the cost of house and the value of things inside the house.

DISABILITY INSURANCE: Disability insurance basically replaces a percentage of your lost income if you’re unable to work for extended periods of time. Disability insurance costs vary, depending on factors such as age, health and the profession of the insured.