Most investors begin to protect themselves from the risks involved, including becoming a millionaire for their long-term goals. A health insurance policy covers hospital bills without saving money.
There are other risks that you need to protect yourself from losing your savings halfway before achieving your goals.
Term insurance
A term insurance plan is a low-cost, high cover plan, which is the purest form of life insurance. The policyholder pays a premium for a fixed period and receives nothing from surviving this period, but in the event of death during this period the family will receive lifetime coverage.
Tips for Buying a Term Insurance Plan
- Choose the term or term of the policy that matches your retirement age
- Explore 3-4 preferred insurers and then decide from whom to buy based on premium
- Choose online purchase for a lower premium Inform the nominees.
Health insurance
Medical inflation is rising rapidly and even you and all your family members need adequate coverage. If you have a young family with children, choose a family floater, otherwise, go with personal health care.
Tips for Buying a Health Insurance Plan
- Explore 3-4 preferred insurers and then decide based on premium
- Stick to plain-vanilla plans.
- Note the exceptions and inclusions in the policy
- Disclose all medical information at the time of purchase
Personal Accident Insurance
Accidents can cause a disability or death that affects a person’s income. There are accident insurance plans that cover these risks.
Disability coverage includes four accidents that can result from an accident – death, permanent total disability, etc.
Tips for Buying Personal Accident Insurance
- Choose your preferred insurance company as premiums are almost the same across insurance companies
- Pay premium based on risk category depending on your income and employment
- Choose a comprehensive cover that contains four contingencies
Motor insurance
Although only third-party coverage is mandatory, it provides your vehicle with a comprehensive cover. A comprehensive policy with a third-party cover and ‘own damage cover’ will help you save money when your own vehicle is damaged.
Tips for Buying Motor Insurance
- Explore 3-4 preferential insurance and then compare premium
- Discounts Available – Talk to Insurers, Brokers
- Note if the cover note omits any major benefits to the very low premium
- To reduce the premium, choose Comment or discount
- Make sure you take advantage of the no-claim bonus
Home insurance
You can choose an independent fire insurance policy that protects your home building from earthquakes, lightning, storms, floods, and riots, or a more inclusive home package policy that includes the contents of your home against theft. The premium is less than 1% of the price of the content or structure. There are two options for protecting your home or content – against current market value, against restoration value, or at the time of claim.
Tips for Buying Home Insurance
- Choose your preferred insurance company as the premium is the same across insurance companies
- Keep a list of items along with purchase bills of high-value items
- Choose personal hazard cover or other add-ons
