Top 5 Insurance Plans in 2022

 Friends, we all should buy insurance and we all know this Especially life insurance, health insurance and motor insurance is already compulsory But apart from these 3 important insurance plans,

 many other insurance plans are sold unnecessarily to us but we can avoid those Why to pay the premium unnecessarily So we are going to talk about 5 such insurance plans we should avoid With that, we'll discuss about life insurance and we'll see what are the cases in which we can avoid life insurance also The article is going to be interesting,  stay tuned!

 

The 1st insurance we should avoid is HomeLoan Insurance See, when people buy a house, many people borrow a home loan for it And people don't pay attention there When we receive the loan sanction letter,

 

an insurance premium is also added to that and generally, we don't pay attention to that component And this component is added to your EMI So in a way, you're getting the premium of this insurance in a loan form so you are paying interest on that So according to me,

 

 there is no such benefit of this insurance and we can definitely avoid this one Let me tell you why See, why we are buying or bank is selling the home loan insurance? The main objective of the bank is, if it happens in a case when the person who took home loan dies then they can do the recovery easily On the other hand,

 

the objective of the borrower is not to put the liabilities on his family So the purpose of both is getting solved but we are getting this insurance expensive Our purpose can also be solved with term insurance See, in case of all the eventualities If someone's life is at risk and that person dies due to some reason Then you get all these covers in term insurance Term insurance is already the cheapest insurance and maybe that's why the sellers sell it less So we have to see our own benefit and our benefit is to increase the term insurance That means whenever we're buying

 

a home loan or increasing our liability or borrowing any type of loan The portion which is getting increased in our liability, we can increase the same portion in our term cover That means, either we can buy an extra term policy or we can increase the cover of our existing term insurance The second type of insurance we should avoid is Flight insurance Whenever we travel by air,

 

 you might have noticed an insurance premium is automatically added But you can also uncheck that box According to me, there is no such benefit from that insurance as well because it is covering such an eventuality that if there occurs any accident during the flight or any mishap happens in which loss of life is there It is covering such events These events are also covered in term insurance

 

 3rd is Child Insurance Plan Many people sell these child insurance plans That means if you have kids, then you can secure their education in future Such plans are there in the market Or insurance against a child's life is also sold But firstly,

 

 we should understand the purpose of the insurance Firstly, our children are not earning right now Ultimately, the insurance covers the events such as loss of earning So that the family of that person doesn't suffer But since our children are not earning now, there is no need for life insurance Otherwise,

 

 you'll pay the premium unnecessarily Then there are education plans about which we already discussed and all these things are already covered in term insurance So we need to buy a comprehensive term insurance plan

 

 The 4th insurance that we can avoid is Credit Card Insurance plan Many people are unable to do the credit card payments So for that, credit card companies sell insurance plans That means if you are not able to pay credit card bill due to any reason Like unemployment can be a reason

 

 Disability or accident can be reasons As we discussed before, all these things are already covered in term insurance Secondly, instead of buying an insurance plan for credit card and increasing the spending on credit card It's better to maintain financial discipline and buy less using credit card

 

And for events such as unemployment, any disease for some time you can make an emergency fund about which we discussed multiple times In that, keep a reserve of your 6 monthly incomes as an emergency fund

 

The 5th insurance we can avoid is Disease Insurance Many different types of plans are now available in the market Some say to buy cancer specific insurance plan If in future, you suffer from cancer then this insurance can cover such an event There are many heart specific

 

plans Many covid specific plans are there in the last 2 years But according to me, there is no benefit of such insurance plans because we don't know from what type of disease we will suffer in future So it's better to buy a comprehensive health insurance plan

 which covers maximum diseases and pre-existing diseases So we discussed about 5 such plans which we should avoid Now let's talk about Life insurance In some cases, there's no need of life insurance

 

What is the purpose of life insurance? If anyone dies, then the family need not to suffer That means we want to replace the earning of that person But if the family income is already good Then maybe life insurance

 

 is not required And in which cases can this happen? If your spouse is already earning good Then they don't need an insurance plan Or if you have some income generating assets Like many people have an extra rental income. So they might don't need Many people have good savings, good interest incomes

 

So in cases where income generating assets are there or monthly income is good In such cases, life insurance is not needed And when this happens? It generally happens in your 40's or 50's when you build sufficient assets So the requirement for life insurance decreases Because your children

 

 also grow old and they also become independent But insurance is a must for the people who are just starting their career and are in 20's or 30's because liabilities can increase in the coming time So when we buy insurance, we should buy it as soon as possible because the premium is less So broadly speaking, as we discussed earlier We need only 3 main insurances

 

1.    Life insurance in which we should buy a term insurance 2.

2.    Health insurance, in which we should buy a comprehensive insurance after research

3.    Car insurance which is already compulsory So that's it in this article.