Five insurance covers worth taking a look at

Economic Times Article quoting Anil Sahgal of

Insurance is possibly the best financial tool to protect yourself as well as your valuables from unforeseen circumstances. In fact, you owe it to your family to get the best cover you can afford. However, while it pays to be smart about insuring your family and your valuables, it is even wiser to make out which policies are truly worthwhile, and which ones are redundant – particularly in such times when you can get insurance for almost everything on everything on earth, including your wedding.

You definitely need to know that while each insurance cover has its own benefits, not all of them are needed in normal circumstances. Also, there are lots of insurance policies that use scare tactics to lure you in, and have premiums that are overpriced. Therefore, you need to be selective in choice.

Here we take a look at some types of insurance policies everyone should take into account:

1. Life Insurance

In today’s world your top priority should be to insure your life first, particularly if you have financial dependents. That is because it is not wise to leave your dependents without any financial protection in case something untoward happens to you. But you should avoid going for traditional insurance plans as that would be costly, which will also make it difficult to cover your life adequately. Therefore, a viable and much better option would be term insurance.

Term insurance, in fact, is a no-frills, low-cost option to secure financial security for the family, and therefore should preferably be there in everyone’s insurance portfolio. “Term insurance is a ‘must-have’ if you have a family that is financially dependent on you and if you are the primary source of income for your family. There’s never really a good time to die, but dying during one’s earning years is particularly burdensome to those who depend on us for income and support. Not having you around in such a scenario can impose a significant financial burden on your loved ones, especially if you have outstanding liabilities as well such as home loans, car loans etc,” says Anil Sahgal, founder of financial services portal .

However, term insurance may not be necessary if you are single with no financial dependents and having limited or no liabilities.

Read  at:

Anil Sahgal of on ET – 5 insurance plans