Types of insurance you would need

Insurance is an integral part of anybody’s financial planning. All the planning and investment may go haywire if you are not adequately secured. Insurance provides a financial safety net for emergencies, covering all the unwanted expenses that could ruin all our savings. In worst case, due to these unwanted costs, one may get caught in a borrow-and-spend cycle.

There is plethora of insurance plans available to insure anything you want. The type of insurance will depend upon each individual and his/her unique requirement. Nevertheless, following are some types of insurance that you should know before planning to insure.

Life Insurance: You should take a life insurance plan if someone depends upon you financially. After your death, the proceeds from the insurance company will help the dependent to get financial security.

Health Insurance: You cannot predict any of the mishaps and hence if you meet an accident, by any chance, you should be covered so that your medical emergency do not jeopardise your other plans and goals. Medical insurance should cover you for emergencies and routine doctor visit. Hence, accidents and basic care should not dent your savings.

Long term disability insurance: Health insurance can only help you to foot your medical bills. Nonetheless, if the accident is serious and has made you unsuitable for your job, then disability insurance will help you in such cases. In general, you should buy an insurance that covers 65 per cent of your income.

Car Insurance: If you own a car, third party insurance is compulsory. Nevertheless, you should always go for a comprehensive insurance that will cover any liability arising out if you meet an accident. Collision coverage foots part of the bill for any damages to your car.

Because insurance is expensive, many people don’t care about it as it takes a chunk out of your budget. But, one should be prudent as being without insurance could lead to financial ruin. So, get insured!