Insured Life: Types of Life Insurance and Other Policies

Insurance Requirements through Your Life

Having insurance is similar to having an umbrella during heavy rain. It may be bothersome to carry around the umbrella, but you sure will be glad to have it when it is pouring. Similarly, the right insurance policies may be the key to leading a healthy and secure financial life. India has more than 57 crore insurable people, which only highlights the increase in insurance penetration from 2.32% in 2000 to 5.51% in 2010. This is what the latest IRDA figures say. Since then, the number of insurance holders has only increased. Moreover, with different types of life insurance, and several add-ons to most types of policies, it is easier now than ever before to pick the right cover that can be customized to suit your lifestyle. Here is a brief look at the different types of policies you require at every age.

In your 20s

This is the best time to get the most reasonable price on your health insurance policy. Moreover, as you grow older, health insurance will only become more expensive since the risk for disease increases with age. Third party auto insurance, if you own a vehicle, is mandatory in India. You can even consider getting comprehensive car insurance coverage at this time. Other policies that you can consider include a renter's policy and disability policy.

In your 30s

When you get married or have children, it is the best time to check out different types of life insurance. Should something go terribly wrong, and result in an untimely death, life insurance can ensure that your family does not suffer from a financial breakdown. This is especially important when you have children and a wife solely dependent on you. There are several types of life insurance policies that you can choose from to pick the one that is most suitable. If you manage to buy yourself a house, then homeowner’s insurance is a good idea, especially if you live in an area that is prone to natural disasters.

In your 40s

Retirement policies need to be evaluated during your late 30's and early 40's. If you have a stable job and regular inflow of adequate finances, then think of your standard of living post retirement. Do you have enough money saved in your bank for a comfortable old age? If not, then long term care policies are great ideas. It can take care of your daily expenses after crossing a particular age and may even be helpful if you have a disability. Since this policy can be expensive as you grow older, it is better to try to get it at a younger age