Insurance is often understood as life, health or auto insurance. Here we are taking a look at some lesser-known insurance policies and what purposes they meet.
Insurance is often understood as life, health or auto insurance. At a time when the country is busy shopping for insurance to reduce its tax outgo, we are going to reiterate that tax saving shouldn’t prompt your insurance purchases. They have a bigger purpose in your portfolio. They financially protect your life, health and valuables. And in that note, we are going to look at some lesser-known insurance policies and what purposes they meet.
Home is one of the most expensive assets we own and yet we leave it exposed to the risk of a damage without a financial security. Natural calamities such as flood, storm, earthquake etc. come unannounced and you can be caught off-guard with the liabilities they bring along. Home insurance can help you financially secure your house and the content inside. It can be acquired by both the owner and the tenant.
Traveling abroad can be an expensive affair and if it goes wrong in any way such as loss of important documents or baggage, a sudden illness etc, it would only mean more hassles and your expenses would go up. Also you don’t want to be stuck in a foreign land in an emergency situation without a helping hand to rescue you out. This is where travel insurance comes handy. While it’s mandatory to carry travel insurance when traveling to certain countries, it’s advisable to carry it wherever you go.
Travel insurance plans can be bought for both domestic and foreign trips for single as well as multiple trips. However, like health insurance, travel insurance doesn’t offer protection against any pre-existing conditions.
Weddings are grand in India and people often end up draining a good chunk of their savings in arrangement for their children’s wedding. There is a series of events and postponement or cancellation due to burglary, fire, accident, death etc. can lead to huge losses. Wedding insurance can work as a line of defense if anything untoward were to come. A typical wedding plan covers expenses incurred during a wedding for booking venue, florist charges, catering services, food, transportation cost etc. Other inclusions and exclusions may vary from policy to policy.
Credit card protection
This acts as an insurance plan for credit cards, debit cards, retail and membership cards. Most credit card companies have a CCP plan nowadays with the basic proposition being the same as in all plans- coverage for theft, burglary, fraud, loss of card etc, covered for a premium. CCP also ensures that your card is blocked in case you lose it. A few companies also offer an interesting price protection feature, wherein the company pays you the difference of the price you have actually paid for the goods or service bought and the lowest printed price advertised for the same.
(The writer is CEO, BankBazaar.com)