Must have insurance plans - # 2

You read Must have insurance plans - #1 ?. So what is second in the must have insurance plans list? Did I hear Life Insurance? You are close!! Read on to find why it is close, but not there yet.

How many times have you driven across the country or a city in this country? How many times have you thanked the heavens that you were not the one in an accident? You think that you drive slowly and carefully and hence will not meet with an accident. Well, think again. Even better, ask yourself a few questions.

• Do you know how roadworthy other vehicles are?
• Have you got any control on quality of driving license issue?
• Do you control how others drive?
• Can you improve road conditions, even if you like to do it?

You must have answered with a resounding NO for all questions – i.e. unless you live in Utopia. The best-case scenario for you is not to trust driving or civic senses of others, but to protect yourself. Apart from buying a decent car with decent safety equipment, you must have a personal accident cover – second on my must have insurance plans list. Why is it second? Read on…

Oh, before I explain the ranking, if I heard you say that you don’t drive, realize that slipping in the bathroom and hurting yourself is also an accident. Falling down and hurting yourself while walking your dog is also an accident. Basically, it covers everything (almost) that can happen to an individual by accident. And it does not burn a hole in your pocket. Typical yearly charges are about INR 1000 – give or take – for a cover of INR 10,00,000.

If you are involved in an accident (I certainly hope that you do not) and if you survive – you must make sure that you have enough protection to get the required treatment for you to get back in shape. If you end up with a disability, then you should be in a position to make changes (that cost money) for you to do the best you can to function in a normal way. That could include

• modification at home – may be a ramp, a toilet for disabled
• buying a sophisticated wheel chair for you to move around
• get regular nursing assistance etc.

Again, it is about your financial ability to drive through an unexpected accident without serious financial after effects and dependency on others – if that is possible. Then life is all about possibilities and Insurance is all about helping you work through unpleasant possibilities.

Still wondering about Life Insurance? Wait for my next post to read why (and more importantly when) you should buy life insurance? Till then, you have enough time to read your decision meter.