Insurance is not an investment. Basically, Insurance financially secures your dependant or yourself when something unfortunate happens to you or your assets respectively.
Major types of insurance you should consider....
What? | Life Insurance | Health Insurance | Auto Insurance | Mortgage Insurance |
Why? | Financial security for your dependant after you | Financial assistance on major medical expense | Financial assistance to handle accidental damages on your automobile | Saving your dependant from any of your outstanding loan liability after you |
Where? | General Insurance provider (LIC, SBI, ICICI, HDFC, TAT AIG, ING VYASYA) | Insurer with good hospital coverage near your area | Bajaj Capital, Oriental etc. First few months along with auto purchase | Most Housing Loan provider has type with Insurer with additional premium |
When? | Start early for lower premium | At least start before age 30 | On Auto Purchase | On Large Loan ie. Housing Loan |
How Much? | 100 x Monthly Income | Yearly Income | On actual damage (All damages are NOT covered) | Equal to outstanding loan |
How Long? | Long Term or Whole Life | Whole Life | 5-10 yrs | Outstanding Loan period |
What more? | Endowment, Accidental death benefit, Annuity, Disability Income, Dividend Options | Cashless payment, Hospitalization income benefit | - | - |
Simple Steps to get Insurance
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