Purchasing general insurance can be equally important as life insurance. This post discusses 5 reasons to buy general insurance and how to purchase one. Keep reading.
Any insurance that can financially protect the policyholder from the destruction or loss of the insured asset is known as general insurance. Also referred to as a non-life insurance policy, it usually has a shorter tenure, like 1 to 5 years, unlike life insurance which can have much longer terms, like 10-15 years and more.
Following are some common types of general insurance policies in India
- Home Insurance
- Vehicle Insurance
- Health Insurance
- Travel Insurance
5 Important Reasons to Buy General Insurance
- Benefits the Policyholder Directly
A life insurance policy usually works in two conditions, depending on the type of policy you buy. The insurer can give the insured amount to the policyholder once the term elapses, which can be years from now, or the nominee gets it if the policyholder dies within the covered term.
On the other hand, the benefits of a non-life insurance policy can be reaped much sooner, and it directly helps the policyholder.
- Different Types of Coverage
You can have specific coverage depending on the type of insurance policy you buy. For instance, you can have health or accident coverage or protect your home from natural or manmade disasters like fire accidents, earthquakes, cyclones, etc. You can also protect your assets from theft or robbery. So, general insurance can provide you with a wide range of insurance coverage according to your need.
- Financial Protection
Buying an asset or something valuable, such as a home or a vehicle, usually requires time, planning, and corpus. So, it can hurt if any of these valuable possessions get damaged, stolen, or destroyed for various reasons. Apart from being emotionally stressful, a person can face an acute financial crunch during such a challenging time.
However, you don’t have to worry if your assets are adequately insured. Your insurance plan can cover the financial losses you suffered depending on the insurance type and cover. This can provide an immense sense of relief during stressful situations.
- Flexibility of Coverage
To begin with, you don’t have to purchase every insurance product under the sun. Instead, you can buy a particular non-life insurance policy that covers a specific asset per your need. So, for instance, you can purchase suitable health insurance coverage for yourself or your entire family, depending on your budget and the facilities offered.
Secondly, you can choose the amount of insurance coverage and pay the premium accordingly. Finally, you can include optional add-ons to your basic plan by paying an extra premium. It can significantly improve the scope of coverage.
The Insurance Regulatory and Development Authority of India (IRDAI) tightly regulates the whole insurance sector in India. It is an autonomous regulatory boy that creates, updates and oversees the strict enforcement of rules and regulations for the benefit of the policyholders.
IRDAI also performs routine inspections and audits to ensure that insurance providers strictly abide by all statutory requirements. As a result, you can expect a high level of transparency in how insurance firms operate. So, you can be assured that any claim will be settled amicably provided that your documents are in order and your claim is legitimate.
How to Purchase General Insurance?
You can purchase general insurance by visiting the insurer’s firm or through an authorised distributor. However, purchasing general insurance online is the easiest and hassle-free way. You can purchase general insurance online through the following simple steps.
- Visit the website of your insurance provider.
- Select the type of insurance you want to purchase.
- Furnish your personal details.
- Upload scanned copies of important documents required.
- Pay the requisite premium online to complete the buying process.
General insurance plans can effectively mitigate the losses arising out of uncertainties in life. Therefore, it is wise to select the right combination of insurance products and live a happy and carefree life.