What are the types of general insurance policies you need in your investment portfolio?

One of the best gifts you can give your family and you are an insurance policy. It is a commitment to protecting the financial interests of your loved one in varied scenarios such as hospitalisation, accidents, illnesses, and debt repayments. It also brings down the financial obligations to a great extent. As an investor, when you plan your annual investments, you must include general insurance in the portfolio.

Here are the different general insurance products you can consider –

Health insurance: If there is any kind of insurance every person needs today is without a doubt health insurance. If you are a parent, you need one within days of the child’s birth. You can choose from the range of policies such as standard insurance to critical illness. There are plans for pre-existing medical conditions too. These are further divided into individual and family floater plans. The premium payable depends on the sum assured you opt for.

Life insurance: Many consider life insurance as an unnecessary expense, owing to its premiums being slightly high. If you are the only breadwinner of your family, it is your responsibility to make sure you invest in a decent plan. A life insurance policy secures the financial future of the dependent ones in the event of your untimely death due to natural cause or accident. It is better to invest in them in your 30s as these plans are usually valid only up to a specific age.

Vehicle insurance: Be it a two-wheeler or four-wheeler, vehicle insurance becomes a necessity at some point. Also, the policies are mandatory according to the Motor Vehicle Act, 1988. Driving without a third-party plan is a punishable offence. You could also opt for a comprehensive plan. Such general insurance in India is one the person must hold while riding or driving the bike. Moreover, you can add additional riders for all-round protection from incidents such as vehicle damage, theft, engine damage, urgent roadside service, and so forth.

Home insurance: If you have bought a house under the home loan, you must invest in a good plan. Home insurance helps your dependents pay off the credit if you pass away before the loan gets fully repaid. As such, the dependents of the borrower need not deal with the stress of repaying the credit as the insurance providers settle the loan. Home insurance is essential even if you have an ongoing investment.