Three types of insurance policies you must purchase

In life, the decisions that you make can sometimes become the dividing line between success and failure or even happiness and pain. Similarly, while making a financial plan, the investment decisions that you take can be the dividing line between achieving your financial goals and failing to achieve your financial goals. Tenuously balanced on this dividing line is insurance. The right insurance policies can help you achieve your financial goals and create a safety net in case things do not work out according to plan.

To put it simply, insurance offers you peace of mind against the unexpected. Fortunately, in today’s environment, you can find an insurance policy to cover almost anything imaginable. Having said that, as you map out your financial future, there are three types of insurance that should be firmly on your radar.

Life insurance

You must consider purchasing a life insurance policy as soon as you start working. The right life insurance policy can provide your family with the required financial assistance in the event of your untimely death. While none of us really like to mull over this, it is very important for every individual to purchase a life insurance policy. Moreover, there are several life insurance policies that are currently available in the market. They range from providing only death benefit to providing your family with annuity after your death. Thus, it is imperative that you actively consider purchasing a life insurance policy and seek advice to determine which policy will meet your specific requirements.

Health insurance

It is rightly said that health is wealth. This makes health insurance one of the most important types of insurance to purchase. Most of you take steps to maintain a healthy and productive lifestyle. This is what allows you to work, earn money, and enjoy life. However, an unexpected injury or ill-health can put a spanner in the works and impact your ability to work, earn, and enjoy life. The cost of treating diseases can be fairly high. At the same time, ill-health can impede you from working and earning money. This can become a significant financial as well as emotional drain on both you and your family. The right health insurance policy can cover your various medical expenses. In some cases, health insurance policies also provide lumpsum cover that can take care of your lifestyle expenses in addition to medical treatment.

Vehicle insurance

Just like we protect our life and health, we must also protect our assets. For the average Indian family, a vehicle is not just a means of commuting. It is also a source of pride and achievement. When you work hard and plan judiciously to purchase a vehicle, you must also purchase vehicle insurance. Vehicle or motor insurance policies offer financial assistance in the event of accidents involving your car, two-wheelers or commercial vehicles. In the event of accidents, it can help you avoid legal hassles, meet all third-party liability, and provide financial assistance for repair. Further, in case of theft, it can also help you recover a portion of the vehicles’ on-road price.

Insurance is like your ‘friend in need’. It protects you, your family, and your assets in times when you most require help and protection. It is commonly believed that insurance is not an investment product. This is true to the extent that you look at investments only through the lens of monetary returns. However, if you look at returns from the perspective of peace of mind and financial support to family, then insurance is truly the best investment you will ever make.

(The writer is co-founder, Turtlemint, an InsurTech company. Views expressed are personal)