Protection plans By Beena Doshi

Namaste!!

Today, I am going to write about the different types of Protection Plan. As the name suggests, it is for the Protection of our lives and our finances.

So, one must have all of them. The order can vary depending on your requirements, but should be taken on priority.Life is full of unexpected and undesirable events, hence it becomes mandatory to opt for Insurance to secure our family’s future and finances.

 Different types of Protection plan :-

 A)Term-Life Plan- This Insurance plan is extremely important as it provides financial protection to the family of the insured, in case of any eventuality. A lump sum death benefit is paid to the beneficiary in case of demise of the insured during the policy tenure.The major benefits are as follows :

  • Protection of coverage for a specific period of time
  • Cover against Death and terminal Illness
  • Lower premium cost
  • No cash value
  • Supplemenary riders are allowed to be attached. For example :

Ø  Accidental rider

Ø  Critical Illness rider

Ø  Premium waiver

B) Health Insurance- This is another very important type of Protection plan.Due to growing medical Inflation, our finances can take a toll if not covered properly and adequately. There are several types of health insurances and their benefits.

  • Can be taken for Individual and Family (also called as Floater)
  • Covers Hospital and Surgical expenses
  • Offers Daily cash
  • Covers Pre 60 and Post 90 days of hospitalization
  • Pre-existing diseases are covered after 2 or 3 years as per the type of the policy
  • Emergency road ambulance cover
  • Income Tax benefit under 80 D of the IT Act
  • Ayurvedic and Homeopathic Hospitalisation cover
  • Organ Donor expenses covered
  • Day care Procedures covered
  • Preventive Health check up after 3 years
  • Bonus of 5% or 10% to be added to the sum assured after every claim free year
  • Maternity expenses are covered in some policies

C) Personal Accident Plan- Personal accident plans are a type of general insurance that provides financial support in the event of an unfortunate accident.One important point to note is that coverage provided by personal accident plans are different from life insurance and health insurance that are mentioned in previous sections. Coverage provided by personal accident plan is only cover for injuries and treatments which arises due to an accident.

 Common coverage provided by Personal Accident Plans

  • Pays lumpsum amount on  Death , Permanent Total Disability and Permanent Partial Disability caused by an accident.

There are optional covers as follows:

Ø  Accidental Hospitalisation expenses

Ø  Adventure sports benefit

Ø  Air Ambulance cover

Ø  Children Education Benefit

Ø  EMI Payment cover

Ø  Loan protector cover

Ø  Loss of income due to disability from accident

 

Hopefully, this article gives you a clear overview of the what are the common types of insurance that individual should have before investing in other avenues.

        Let’s make Financial Life Better !!