‘Non-life insurance’ is simply the other forms of insurance, apart from life insurance. Growing up, all we hear is life insurance, but there are other forms of insurance that are equally vital to our physical and mental well-being. What are these?
First of all, what is insurance, what is life insurance and what are the various other kinds of insurance?
Buying an insurance policy is a way of protecting yourself from loss in the future. You might not actually experience this loss, but knowing that you are financially protected in case it does happen can lead to precious peace of mind.
Having a life insurance policy means that in case of untimely passing away and loss of income, your family will not be left financially helpless. A pre-fixed sum (which is the amount you have been covered for) will be paid to your nominee – your spouse or any other next of kin – to help your family financially. You can choose to either have a one-time payout or as a recurring payment.
There are various other kinds of insurance but the two most popular and important ones, both in India and throughout the world, are vehicle insurance and health insurance.
Vehicle Insurance: It is mandatory to buy vehicle insurance when you buy any vehicle in India, whether a car or a two-wheeler. This kind of insurance protects you against financial expenses and loss when your vehicle is damaged due to an accident, theft or due to natural hazards like fire, floods, earthquakes and landslides. The insurance policy could also cover financial losses related to hospitalization due to an accident and other legal liabilities.
Medical insurance: This is another kind of insurance that is becoming rapidly popular in India given the skyrocketing costs of medical treatment. It is quite a scary thought to think that you might not be able to afford the expenses related to treatment and hospitalization especially with conditions such as cancer or heart disease. Medical costs in metro cities across the country are rising inexorably and medical insurance is a way of ensuring that you can afford the treatment you want. Of course, each policy is different and your insurance payout will depend on what kind of policy you have bought. However, just knowing that you can depend on your health insurance policy to provide financial support can be a huge relief. You do not need to worry about draining your savings or being in debt because of illness.
It is advisable to have life, auto and medical insurance so that you and your family are protected against financial loss in case of untimely death, accident or theft of vehicle, and in case of medical needs. The peace of mind it brings is far more valuable than the money you will spend to buy the policies!