Most of the Indians generally pick only two options of insurance: life and general insurance.

Life insurance covers a family against the financial implications of the death of the insured. General insurance is for the protection in several areas such as health property, professional liability among others. They will only reimburse losses suffered and not confer any additional benefits to the policyholder.

Before deciding whether you require insurance or not take the following into consideration:

The probability of event

Before zeroing in on a policy, access the probability of an event and its financial impact on you. Of course in the case of life insurance, although death is a certainty, the financial impact of death will vary with age, and the number of dependents.

Will I be adequately insured?

Merely having a cover is not enough. Too small a cover is virtually pointless, considering that it will not serve yours or your family's purpose. Too much insurance will mean wastage of precious money towards payment of premiums. There are certain techniques to help you estimate the right quantum of cover. We will discuss these later.

Can I afford it? Beware of agents who try to hard sell you high-priced insurance covers, as they may be detrimental to your long-term finances. You should take care that insurance premiums do not eat into a huge chunk of our income. Calculate the size of the cover, based on the premium afforded by you.

Why InsuranceMall?

InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy.

Now, if you want to understand the nuances of different types of policies and its price, feel free to seek the help of InsuranceMall to select the right products based on your need.

Follow @ TWITTER | Join @ FACEBOOK