TomorrowMakers

Are you covered with all the basic insurances? Here's what you need to know

4 Types of insurance every young woman should have

As a savvy and smart young woman, you have a decent job, you have put away some money as savings, and are working towards achieving your dreams. Now, the next clever move would be to arm yourself with insurance that will secure your financial future and that of your loved ones.

You may ask yourself, do I need insurance? The answer is a resounding YES. There are many compelling reasons you need various kinds of insurance.

Let’s discuss the four types of insurance every smart woman should invest in and why:

1. Health insurance

This is one of the first insurance investments you should make. It would be foolish to think you are young and healthy and hence won’t need health insurance. The earlier you buy health insurance, the cheaper it will be. It provides cover against hospitalisation, medical expenses, post-care, doctors’ fees, medical emergencies, surgery, critical illness, maternity expenses, and more. An annual investment of less than Rs 10,000 can provide health insurance cover of about Rs 25 lakh if you are in your 20s or early 30s. This is a small price to pay for the peace of mind and comprehensive cover a health insurance policy provides.

2. Endowment life insurance or ULIP

It is uncommon for youngsters to think about life insurance as mortality seems far-fetched and leaving a legacy is not a priority. A smart move would be to buy a life insurance product that is also an investment tool. An endowment life insurance is just the product to meet this goal. What it does is take part of the premium you pay and use it to provide life cover, while the rest is invested by the insurance company. By starting young, you have a greater probability of outliving the policy term. Once the term is over, you will get a lump sum amount in maturity benefits. Endowment plans also offer periodic bonuses. You can use this money to make the down payment on a house, buy a car, travel, or invest it again to safeguard your future.

Unit Linked Insurance Plans (ULIPs) are a great tool to start a long-term investment. Along with life cover, they allow for equity exposure with a lock-in that ensures your capital has enough time to grow. At the same time, it is a great tax-saving tool to have in your arsenal.  

3. Motor insurance

If you own a car or two-wheeler, it is imperative to buy motor insurance. Not only is it compulsory to have in India; it also protects you from unfortunate situations. Car repairs can be expensive. Even if you are the safest driver you know, it doesn’t mean you will not get into accidents; your car can be damaged due to someone else’s negligence. Motor insurance will pay for repairs to your car; there’s no need to shell out money from your pocket. It also reduces your liability towards any property damage or injury to another person in the event of an accident. A comprehensive motor insurance will pay for accidental damages to self or third party. You can further improvise by opting for riders that cover medical expenses, accessories cover, zero depreciation cover, etc.

4. Home/rental insurance

Every smart woman should have home insurance (if she’s a homeowner) or rental insurance (if she’s a tenant). Most think rental insurance is unnecessary and the landlord’s insurance covers them. This is not so; the landlord’s insurance only safeguards them. You need to buy separate rental insurance to protect yourself against loss of personal property via damage or theft. It also provides liability coverage if someone is injured on your premises. Similarly, a homeowner’s insurance also provides cover against damage, theft, accidents, or a natural disaster. It also protects against liabilities to third parties and covers for temporary living expenses.

Whether you are single, married, have kids, or dependent parents, you need insurance to protect yourself and your loved ones against unfavourable situations. It is not a ‘good-to-have’ but a ‘must-have’. Talk to experts to understand which insurance products are most suitable for you. Get protection and peace of mind today!

As a savvy and smart young woman, you have a decent job, you have put away some money as savings, and are working towards achieving your dreams. Now, the next clever move would be to arm yourself with insurance that will secure your financial future and that of your loved ones.

You may ask yourself, do I need insurance? The answer is a resounding YES. There are many compelling reasons you need various kinds of insurance.

Let’s discuss the four types of insurance every smart woman should invest in and why:

1. Health insurance

This is one of the first insurance investments you should make. It would be foolish to think you are young and healthy and hence won’t need health insurance. The earlier you buy health insurance, the cheaper it will be. It provides cover against hospitalisation, medical expenses, post-care, doctors’ fees, medical emergencies, surgery, critical illness, maternity expenses, and more. An annual investment of less than Rs 10,000 can provide health insurance cover of about Rs 25 lakh if you are in your 20s or early 30s. This is a small price to pay for the peace of mind and comprehensive cover a health insurance policy provides.

2. Endowment life insurance or ULIP

It is uncommon for youngsters to think about life insurance as mortality seems far-fetched and leaving a legacy is not a priority. A smart move would be to buy a life insurance product that is also an investment tool. An endowment life insurance is just the product to meet this goal. What it does is take part of the premium you pay and use it to provide life cover, while the rest is invested by the insurance company. By starting young, you have a greater probability of outliving the policy term. Once the term is over, you will get a lump sum amount in maturity benefits. Endowment plans also offer periodic bonuses. You can use this money to make the down payment on a house, buy a car, travel, or invest it again to safeguard your future.

Unit Linked Insurance Plans (ULIPs) are a great tool to start a long-term investment. Along with life cover, they allow for equity exposure with a lock-in that ensures your capital has enough time to grow. At the same time, it is a great tax-saving tool to have in your arsenal.  

3. Motor insurance

If you own a car or two-wheeler, it is imperative to buy motor insurance. Not only is it compulsory to have in India; it also protects you from unfortunate situations. Car repairs can be expensive. Even if you are the safest driver you know, it doesn’t mean you will not get into accidents; your car can be damaged due to someone else’s negligence. Motor insurance will pay for repairs to your car; there’s no need to shell out money from your pocket. It also reduces your liability towards any property damage or injury to another person in the event of an accident. A comprehensive motor insurance will pay for accidental damages to self or third party. You can further improvise by opting for riders that cover medical expenses, accessories cover, zero depreciation cover, etc.

4. Home/rental insurance

Every smart woman should have home insurance (if she’s a homeowner) or rental insurance (if she’s a tenant). Most think rental insurance is unnecessary and the landlord’s insurance covers them. This is not so; the landlord’s insurance only safeguards them. You need to buy separate rental insurance to protect yourself against loss of personal property via damage or theft. It also provides liability coverage if someone is injured on your premises. Similarly, a homeowner’s insurance also provides cover against damage, theft, accidents, or a natural disaster. It also protects against liabilities to third parties and covers for temporary living expenses.

Whether you are single, married, have kids, or dependent parents, you need insurance to protect yourself and your loved ones against unfavourable situations. It is not a ‘good-to-have’ but a ‘must-have’. Talk to experts to understand which insurance products are most suitable for you. Get protection and peace of mind today!