What are the Benefits That Accrue When Investing in a General Insurance Cover?

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Planning helps you reach your goals, be it personal or professional ones. But solely following the laid-out plan can be at times be difficult and that is when planning for setbacks is also essential. This is where the concept of insurance comes into picture. 

An insurance policy helps to manage the financial impact of any holdup in your desired plan, be it financial planning for retirement or charting your organisational plan. It is a contract between you, the policyholder, and the insurance company whereby the insurer agrees to make good for any losses caused due to specified events as per the terms of the contract. Insurance is divided in two types, life and non-life insurance plans. As the name suggests, life insurance comes into play during the policyholder’s demise whereas non-life insurance is for all times other than death. Thus, non-life insurance is also known as general insurance. Considering the different types of situations covered under general insurance, it is safe to say all insurance policies that are not life insurance plans are classified under the category of general insurance plans.

Here are some of the benefits of the different types of general insurance policies. Let’s have a look – 

Health insurance

Health insurance is gaining prominence in present times. With the entire world dealing with a global pandemic, it is essential to safeguard your health. While taking adequate precautions is the one thing to no overlook, having a health insurance policy helps to safeguard your finances too. Health insurance plans can be purchased to provide financial coverage for different types of ailments. Moreover, these policies are available for different age groups too. Depending on your coverage requirements, a health insurance helps to tackle medical emergencies and no longer be worried about the treatment costs. 

Motor insurance

The only insurance cover that is mandatory as per the law is the motor insurance cover. The Motor Vehicles Act of 1988 lays down this requirement where all vehicles registered in the country are compulsorily required to have a motor insurance policy. Motor insurance cover help absorb the financial effect of an accident or damage. It covers third-party liabilities as well damage to your vehicle from perils like natural calamities and man-made risks.

Home insurance

Since a house is the single largest investment for majority buyers, the damage to your home can have a hefty financial loss. Home insurance policy covers the effect of natural disasters, burglary, terrorism and more. Apart from the structure, contents of your home can also be insured for and additional amount of premium. 

Travel insurance

Just like other things in life, travel is also prone to risks. Despite meticulous planning, inconveniences might happen during your travels. With a travel insurance policy, worries like baggage loss or delay, loss of passport, medical emergency, etc can be dealt even when you are in a different country. Based on your age and purpose of travel, different travel insurance plans can be purchased. 

Commercial insurance

With a commercial insurance policy, business related losses can be mitigated that otherwise might have a devastating financial impact. Commercial insurance is further classified into shopkeeper’s insurance, mobile insurance, marine insurance, property insurance, employee benefits insurance, etc.

These are some of the benefits of availing general insurance plans for varying situations, right from personal to professional needs. Keep in mind the above benefits and get one based on your requirements. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale. 

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