Consider taking less talked about insurance covers

There is misconception that a standard health insurance plan will cover all the diseases. However, there are different types of health insurance plans and it is important to choose a right plan as per your needs.

Consider taking less talked about insurance covers

Pandemic has been big booster for the insurance industry. Increasing uncertainty and rising healthcare cost due to coronavirus along with digitalization resulted in consumers taking active interest in insurance as a product. While life and health insurance policies are the most popular products in the insurance space, there are few other insurance covers which consumers can consider. Which are those and why consider them? Some of other less talked about insurance covers are critical illness, personal accident, two-wheeler, home insurance and cyber insurance. Why consider buying this insurance? Life is uncertain and apart from taking a standard health and life insurance, one may suffer from unforeseen risk of major illness, accident theft in the house or a cyber fraud. Hence, mitigate the risk and protect your life against uncertainties. Before buying the policy, so proper due diligence of the policy and own personal profile. Also seek the help of the insurance advisor before taking the insurance cover.

Firstly, let us understand which are different type of health insurance plans in India:

Often there is misconception that a standard health insurance plan will cover all the diseases. However, there are different types of health insurance plans and it is important to choose a right plan as per your needs. Broadly there are two types of plans, indemnity plan and fixed benefit health plans.

Indemnity plan offers coverage for hospital expenses depending on the insured sum. So, if an individual has a policy of Rs 5 lakh and hospital expenses incurred are of Rs 3 lakh then the insurance company will pay out Rs 3 lakh to the policyholder and the remaining amount will be saved for the future claims. Indemnity plan can offer individual coverage, senior citizen plans and also family floater plans insuring entire family. Mediclaim coverage is also an indemnity plan which covers hospitalization expenses.

Fixed Benefit Health Plans provides fixed amount which can be used by the insured person for pre-determined critical illnesses or medical conditions. The amount paid is irrespective of the expenses incurred. Within fixed benefit health plan, individuals can choose following insurance covers:

Critical illness insurance will help to protect you and your family in event of diagnosis of critical illness mentioned in the policy document. These diseases could be cardiovascular disease, cancer or kidney disease. When diagnosed with a disease the insurance company will pay a lump sum amount upfront irrespective of the actual or estimated medical expenditure. Hence, in event of heart stroke or any other major illness such insurance coverage can provide you financial protection and help you pay huge medical expenses.  Note one can either choose a separate policy or an add-on to the existing health insurance plan.

Personal accident insurance plan can protect against any type of permanent or partial disability due to accident. Few policies also offer a death benefit if it occurs as a result of an accident.  As life is uncertain and at times accident can have an irreparable damage to an individual making it difficult for him or her to live a regular life.  Hence, an insurance policy can compensate and protect against the disabilities.

Apart from the aforementioned health insurance plans, individuals can consider taking following insurance covers:

Home insurance policy protects your house against natural calamity, fire breakout or theft. This policy will cover your house building and your belongings like furniture and appliances etc. You can also protect your valuable jewellery under this policy. As home is where the heart is, events like floods, burglary are likely to cause damage both in monetary and emotional terms.  Hence, a home insurance can give you a sense of financial security in case of any major structural damage to your house.                  

Cyber Insurance policy will protect an individual against all times of cyber threats and risk such as malware attacks, phishing, data loss, cyber-attacks, etc. We often feel what is the need of cyber insurance but note in the recent times with all of us working from home and doing most of our shopping, transactions online we have all our valuable data like password, bank details on phone and laptop.  Any attack will cause a severe damage including financial loss. A cyber insurance policy will protect against all such type of cyber threats. Before buying the policy take a note of the exclusions and inclusions and select a plan which best suits your requirement.

Summing up

Life is unpredictable so it better to be safe than sorry. Apart from the standard insurance policies, consider taking above mentioned policy based on your requirement which can provide financial safety in event of the unforeseen emergencies.