Insurance is an essential component of every financial planning. There are various risks associated with finance and insurances; make sure to identify and mitigate these risks for fruitful financial planning for a steady life. With adequately structured life, disability, long-term care, and critical illness insurance, one can transfer the financial risk of uncontrollable events to a third party- the insurance company. Insurance is a contract represented by a policy; the insurance company offers financial protection or reimbursement against losses. The company pools clients’ risks to make payments more affordable for the insured.

1. Life Insurance Life insurance is financial support for your family in case of your death. It is a cover that helps your family to maintain a good and existing standard of living and meet their financial necessities. It also serves as an effective investment and tax-saving tool. Life insurance provides an alternative to substitute the loss of income that occurs when someone dies.

2. Health Insurance A health insurance plan covers critical illness and guarantees payment when facing any major health issues. It aids us during any health emergencies & incurred hospitalization expenses. Health insurance is also known as a Mediclaim policy. A health insurance plan provides reimbursement for different expenses, including surgical costs, day-care expenses, critical illness, etc.

3. General Insurance General Insurance is a contract that offers financial compensation for any loss other than death. It ensures everything apart from life. All different types of Insurance come under this category. These include the following:

   • Motor Insurance: It offers coverage from a financial loss arising from theft or damage to your vehicle. It also protects from liability towards third parties for personal injury, death, and property damage on account of any accident involving your vehicle. It is a cashless and convenient claim procedure.
   • Personal Accident: Personal Accident Insurance Policy gives complete financial protection against all accidental occurrences leading to death, permanent disability, permanent partial disability, and temporary total disability
   • Shop Insurance: As a shop owner, one is constantly worried about the shop and the contents and the risk that continually hovers over it, like theft, an employee’s infidelity, a fire accident, etc. Such insurances take care of such losses and provide a cover for the same.
   • Fire and Special Perils: One can insure all immovable and movable property located at particular premises such as buildings, plant and machinery, furniture, fixtures, fittings and other contents, stocks and machinery temporarily removed from the premises for repairs.