What is insurance planning?

Insurance planning is the process of carefully selecting insurance policies to financially protect yourself, your family members, assets, etc., against unexpected losses. It includes finding one or more insurance providers who can financially support you in case of a crisis. In a nutshell, insurance planning helps to ease the financial burdens related to unfortunate life events.

 

Why is insurance planning important?

Without thorough insurance planning, you can be financially exposed to uncertain life events. Proper planning lets you identify the key risks that may impact your life and choose the insurance policies that cover those risks. This sort of preparation and management of life risks is essential to monetarily safeguard yourself and your family in the long run.

 

Types of Insurance

There are several types of insurance plans available. Some of the commonly preferred ones include the following:

 

Life insurance

Life insurance is what you can avail in order to safeguard your family in case of your death during the tenor of the policy.The most basic form of life insurance available to buyers is term insurance. Life insurance helps secure your family financially with a lump sum amount that is paid out in the event of the policy holder’s death within the policy period

Health insurance

This is purchased for covering medical expenses revolving around various health issues, including hospitalisation, treatments and so on. These insurance plans come in handy in case of medical emergencies; you can also avail of cashless facility across network hospitals of the insurer

Child Plans

These insurance policies are savings instruments that help in generating lump sum funds whenever children reach a certain age for pursuing higher studies. In these plans, the life assured is that of the child or the recipient of the funds while the parents are the policy owners.

Home insurance

These insurance plans cover any damages to the home on account of accidents, mishaps and natural calamities, among other such events.

Auto Insurance

These are insurance plans for vehicles, including cars and bikes. These offer protection against natural calamities, damages to third parties (people who have incurred losses or been hurt in an accident with the policyholder’s vehicle) and also damages to the vehicle along with mishaps and accidents Insurance is thus the need of the hour in today’s uncertain times -- evaluate your financial situation to choose a plan best suited to your future financial needs