Most started taking insurance seriously especially after the pandemic, to be properly protected against any financial emergency.
Supriya Rathi – Wholetime Director, Anand Rathi Insurance Brokers, says, “COVID has ripped apart the personal level protection system for any individual wide open. A deep dive into an individual assessment of protection needs would leave one in awe of dire needs of a systematic way of protecting one’s financial losses.”
Having said that, insurance is not limited to health and life. Industry experts point out that to be properly covered against any emergencies, one needs to opt for a few more insurance policies along with life and health plans, depending on their needs. Before COVID, the most focussed insurance covers were life insurance and car insurance, and to some extent health insurance.
Here is a summary of the ‘Must Have Insurance Covers’ in a personal portfolio:
Term Assurance – Every earning individual with dependencies must have this policy minimum to the extent of meeting liabilities post his/her untimely death. Rathi says “Plain vanilla term assurance from a reputed Life Insurance company with a higher sum assured, serves all needs.”
Health Insurance – Needless to add more why this one. Experts suggest structure based on affordability and need is to take minimum sum insured individual policies for each family member. This followed by a family floater policy and if required a further top up over and above this. “The structure meets the rising medical cost with age. If initial cost is a concern, at least buy one family floater policy,” adds Rathi.
Personal Accident – One could always look at Pradhan Mantri Suraksha Bima, which helps to meet any financial loss to the family due to untimely accidental death. Apart from the Pradhan Mantri Suraksha Bima Yojana 2.0 lakhs sum Assured for which Rs 12 is debited to bank account annually, individuals are covered under their Savings A/c. Debit /Credit Card also. However, note that those come with conditions attached, so experts say it is better to have one individual personal accident policy, depending on one’s lifestyle.
Home Insurance – Whether staying on rent or own house, protect your home building and contents for protection against fire, burglary and natural perils. Rathi points out the new standard Gruh Raksha policy has some good and simplified features. Opting for a longer duration policy and attempt to coincide with birthdays/imp dates to remember the policy renewal.
Cyber Insurance – Data is the new unit of economics. With our lives interconnected through the internet the minute we wake up, protect our valuable data and information on various devices like mobile phones, desktops, handheld, cloud storage. Therefore, opt for an Individual Cyber Insurance cover protecting at least to the extent of monies in all Bank and all Credit Card Limits.
Motor Insurance – Be it 2 wheelers or 4 wheelers, along with the mandatory third-party insurance, experts say one should get a comprehensive motor insurance cover to be properly covered. Also, ensure to have the mandated third-party insurance renewed every year.
Further, Rathi adds, “Depending on one’s cash flow assessment, one can either align most of the above insurances in one month to finish off the entire protection process for the year in a period.”