Five Basic Insurance Plans Everyone Should Have

Life takes many unexpected twists and turns. Sudden exigencies may lead to precarious financial situations. Insurance policies are designed to provide financial protection against such unknown risks. Although you do not have the power to prevent the many eventualities of life. The least one could do is be prepared for it, so that life is not affected in an adverse manner. In order to maintain financial stability in life, every individual must own five basic insurance policies:

1.Life Insurance Policy: Life insurance plans are essential to provide financial protection to your family in case of your untimely demise. A life insurance policy secures the future of your family in exchange for a small amount of premium. Apart from providing financial protection to your family in the time of need, a life insurance policy is also a good investment option. The amount received at the end of the maturity period can also be used for important things such as marriage of children or retirement planning. Moreover, life insurance policies also offer tax benefits.

2.Health Insurance: Cost of medical treatments are increasing day by day. Hence buying a health insurance plan has become more important than ever. Hospital stays and diagnostic tests can eat away a huge chunk of you savings. A health insurance policy covers all the costs that are involved in the treatment of illnesses and injuries so that you can focus on recovering, rather than worrying about the costs involved.

3.Automobile Insurance: Vehicles are a prized possession for everyone. At times, accidents could occur even if you are not at fault. Accidents cause damage to the vehicles and may also result in legal liabilities. An auto insurance covers the costs of damage to your vehicle as well as covers damage caused to the third parties involved. Furthermore, it also provides protection against any legal liabilities arising out of an accident.

4.Homeowners Insurance: A house is perhaps the most precious asset of all. A homeowners insurances covers all the damages caused to your home in case of accidental damage. Building your home from scratch might cost you a lifetime of savings. A Homeowner’s insurance pays for the cost of rebuilding your home in case of damage due to natural calamities, accidental fires, vandalism etc.

5.Disability Insurance: What if a serious illness or injury leaves you severely disabled and unable to fend for yourself. By taking up a disability insurance policy, you can be assured of a steady income even if you are unable to earn.