Predicting the unexpected is understandably difficult but creating a security blanket for our future should be certain! Securing insurance for ourselves and our family is a simple way of doing so. However, there are many insurance policies which are all suggested to us by experts for a variety of reasons. So, it is best to understand and know your needs to determine the ones you must buy.

While, we buy insurance based on specific situations and many different factors, there are five main policies that are primary to everyone’s needs.

1. Life Insurance
Life insurance is a must-have insurance for everyone. Choosing a life insurance policy safeguards a family if the primary breadwinner passes away. A life insurance policy can cover funeral expenses, ease the financial burden of the family and even pays the bills in case of an untimely demise.

There are mainly two types of life insurance policies available in the country – whole life policy and term life policy. In the former plan, one has to pay a premium for the first few years, and they are covered for their entire life (up to 99 or 100 years). In the latter, the coverage is set for a fixed period and usually premium is also paid for the entire policy term. It is best to consult a financial expert before choosing a suitable life insurance policy as several factors are taken into consideration such as age, occupation, annual income and the dependents.

2. Health Insurance
With the rising costs of healthcare expenses, having a strong health insurance policy is a necessity. Even a simple visit to the doctor for a minor illness can burn a hole in one’s savings. Serious illnesses and surgeries that require hospitalization may create a huge financial setback, even resulting in personal bankruptcies. To save oneself from hefty medical bills, one should consider investing in a health insurance policy that has higher coverage, caters to specific needs, age and deductibles. It is recommended to purchase a health insurance plan early in life when one is healthier, and premiums are low as well as affordable.

3. Automobile Insurance
Accidents on the road can happen quickly and have disastrous outcomes. Automobile or motor insurance ensures the safety of not just the driver, but of the passengers injured in the accident as well. It helps in covering the medical and financial expenses of the injured party and the damage caused to the vehicle too. The policy may also guard the owner or driver against any litigations, liabilities to pay compensation and fines. According to the Motor Vehicles Act 1988, India, it is mandatory for all vehicles on the road to have a third-party insurance plan.
Automobile insurance also protects vehicle owners in case of damages sustained during natural disasters like a cyclone, theft or vandalism. It is advised to compare several quotations and coverage before selecting a motor insurance plan.

4. Disability Insurance
Most people tend to think that this insurance plan is not a necessity in their lives and do not take this policy. However, there could be grievous instances that can leave us vulnerable and unable to work for a living. In such an unfortunate event, disability insurance can provide financial assistance by providing an income replacement for a few years. It considers total, partial and temporary disability and helps the person and his/her family to cover their daily expenses for weeks and months.

If you invest in a life insurance policy, you can also make sure that it covers disability which can lead you to avail dual benefits from a single insurance policy itself.

5. Home Insurance
This insurance policy secures a family against several conditions – damage during calamities, burglary, replacement or renovating the structure and interiors as well as the cost of living somewhere else while the house is being repaired. Buying a home is a huge investment, hence the policy chose should provide sufficient coverage for all the above situations and make the process easier for the entire family. It should also be adequate to cover liability cost towards any damage ensued on the property. One must find out the accurate estimate of how much the local builders charge for per square foot area and calculate the amount of space they will need in case of rebuilding or replacing one’s house.

There are many types of insurance policies that offer different features, benefits and prices. So, it is only wise to understand which is the perfect fit for you and then go ahead with the purchase. Chalk up your needs and priorities to make sure you are happy with your purchase once you sign up for it.