Here are some must-have insurance products for you and your spouse.
IF you are getting married now, it is quite possible that you and your spouse are young. Much of your working life lies ahead of you, and, therefore, you may have a long way to go before you create wealth and long-term securities for your family.
Here are some must-have insurance products for you and your spouse. These will go a long way in making sure your family’s savings are not damaged by the vagaries of life.
Life term insurance
A term insurance plan is ideal for anyone with dependents. It’s also very cheap. A term plan is a pure life insurance cover with no investment component. You can seek a cover worth 20 times your current annual income, and this should be enough to cover the long-term financial needs of your dependents.
A term cover should be bought by anybody with dependents—especially any dependent who may not be generating regular income and may encounter financial hardship in case of untimely demise of the primary earner.
As a youth getting married today, you may be in the prime of your health and may consider a health insurance as pointless expenditure. It is true that the odds are against you requiring hospitalisation or extensive treatment of any kind while you’re young. However, idisease and ill fortune may strike anyone at any time. Hospitalisation expenses are steep. Even a week-long stay at one may set you back by a few lakh rupees.
It’s best to let your insurer cover this expense for you rather than dipping into your savings which may be meagre when you’re young. It’s not enough to rely on your employer-provided cover which will be taken away if you leave your job. To lower your premium costs, you can opt for a family floater plan with your spouse.
Poor lifestyles, pollution, stress and occupational hazards mean that we’re constantly at risk of falling prey to diseases such as diabetes and cancer. Treatment of such diseases is difficult, and so is raising money for prolonged treatment. To secure families going through such crises, it is advisable to avail a critical illness insurance plan which would provide the beneficiary a lump sum upon the diagnosis of a listed critical illness.
Whether you live in your own home or in a rented one, you can buy a home insurance plan. If you own a house, you can cover not just the structure against fire and damages, but also the contents of the home. If you’re a tenant, you can consider a cover for the contents of your home, especially if you have valuables such as jewellery.
If you have some of these covers already, you should consider updating your nomination and beneficiary details to reflect your newly acquired marital status.
The writer is CEO, BankBazaar.com