Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Not all insurance policies give you cover

Nov 26 2012, 13:30 IST
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There are varied insurance products in the market which can be taken to secure any particular risk. There are varied insurance products in the market which can be taken to secure any particular risk.
SummaryThere are varied products in the market which can be taken to secure any particular risk.

Everyone wants to secure their future financially. Although there are lots of financial plans, which promises to protect your future, the best way to make your future safe against any kind of uncertainty is insurance. There are varied products in the market which can be taken to secure any particular risk. Those days are gone when there were only few insurance plans like life, auto and general insurances.

At present, insurance plans cover the following types of risks:

Any particular organ or part of the body, health insurance for critical illness, insurance related to cyber world (to cover hacking, internet viruses, data leakage, etc), kidnapping and ransom, travel risks, cash risks, jewelry and ornaments, flood and earthquake, mobile and accessories, etc.

The question is, do we really need all such insurances? Of course not. One has to be very selective in what he needs and what he purchases.

Here is a list of insurance products that should be avoided if there is no necessity.

Flood & Earthquake

These types of natural calamities happen rarely. Even if flood occurs in rainy season, the area is specified and is not across the country. So, people living in flood-prone areas may think of taking such policies but for others it is useless.

Kidnap & ransom

Kidnap and ransom insurance covers the risk of ramsom payment to kidnappers. Though all companies don’t provide these policies, a few companies do have such plans. The risks covered under such policies are very uncertain. The chance of such an occurrence of this type of risk is negligible and that too restricted to terror affected areas.

Credit Card Loss

Almost all the credit card companies or banks nowadays provides for the security against such losses. They immediately block the card on receiving information about such loss of card. So, taking Credit Card Insurance should be avoided.

Specific Diseases

A good health policy covers all major diseases. They also provide for regular health checkups, accidental treatments, critical illness, etc. So, any policy, which is meant to cover any specific disease or disease, which is not normally covered under health policies, should be avoided.

For the aged

Most companies, including the specialised health insurance company do not cover people above 50 years. There is no such product available in the market which completely covers aged or senior citizens.

All products for them are very rigid in terms and conditions and costly too. Even if someone takes this policy, he has to pay a lot for it. Further, the existing diseases are not covered under such plans. So, taking such a policy can be avoided. Health policy should be taken at the right age and not pay for it in the form of wrong policies or expensive cover.

Insurance companies are there to do business, and they will keep coming up with different plans to appeal to customers’ need but as a customer you should keep your eyes open and undertake a proper research and study about the plan before purchasing the same.

— Author is CEO, BankBazaar.com

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