3 Types of Insurance People Think They don't need, But Actually Do!

Even the mainstream forms of insurance, life insurance and health insurance, have a very low penetrability in India. In such a scenario, it becomes natural to expect that other forms of insurance won't be doing too good here as well. Here's our pick of three types of insurance which are a must-have in one's portfolio but are often neglected by the majority.

Home Insurance

Let us start with a cliché by saying home is the most treasured possession. Yet people in India are reluctant to get their homes insured. Less than 1% of the homes are insured in India. The probable reason behind this is the psyche 'it's never going to happen to me'.

Getting your home insured is imperative. The reasons are quite obvious, if your home gets stricken with some unforeseen event, the cost you have to incur to get it repaired/rebuild will eat away all your savings. 

Home Insurance provides coverage for the loss or damage to the property and possessions against natural and man made calamities including fire, earthquake, theft, burglary, etcetera. A home insurance covers not just the structure but also the contents in your home which if insured individually would get very tedious. It gets you a wide valuable coverage at a very affordable premium.

In today's turbulent times, our homes have become more vulnerable than ever to theft and burglary. Getting your home insured is the only viable option to make up for the probable loss that time may bring. There's yet another reason why it's worthful to get a home insurance. When you apply for a loan against property, the lender gives a preference to an insured property (rather than an uninsured one).

Travel Insurance

When you are in an unknown territory, you never know what might come upon you. While events as flight cancellation can still be dealt with, but accidents, loss of wallet, passport or other important documents would push the panic button of even the coolest of the lot. Might we add, that the healthcare costs in foreign countries are far notch higher compared to India. If you fall prey to an illness, you'll end up losing all your shopping money in a hospital. Chances are thin that your health insurance plan will cover you abroad. With a travel insurance plan by your side, you can enjoy a safe and worry free journey.

Travel insurance acts as a financial cushion against health issues, loss of belongings, personal accident and third party liabilities when you are abroad. Buying a Travel Insurance should be on the top of the checklist whenever you set on a voyage.

Child Plan

A child plan is an insurance cum investment plan offering the insured the dual edge of maturity benefit and death benefit. It is one of the best forms of insurance, yet it is one of the most neglected of them all. It is largely due to the lack of awareness of how valuable this plan is.

The number one concern among parents is to get their child educated. But most of the people fail to realize that the rate at which educational expenses are rising, it can dwarf your savings, no matter how big it look at present. The only way you would be able to match up the educational expenses tomorrow, is buying a child plan today.

Moreover, a child plan also ensures that your child will be financially protected if something is to happen to you. Considering such benefits, it becomes imperative to get a child plan.