Not all insurance policies give you cover

Insurance

Everyone wants to secure their future financially. Although there are lots of financial plans, which promises to protect your future, the best way to make your future safe against any kind of uncertainty is insurance. There are varied products in the market which can be taken to secure any particular risk. Those days are gone when there were only few insurance plans like life, auto and general insurances.

At present, insurance plans cover the following types of risks:

Any particular organ or part of the body, health insurance for critical illness, insurance related to cyber world (to cover hacking, internet viruses, data leakage, etc), kidnapping and ransom, travel risks, cash risks, jewelry and ornaments, flood and earthquake, mobile and accessories, etc.

The question is, do we really need all such insurances? Of course not. One has to be very selective in what he needs and what he purchases.

Here is a list of insurance products that should be avoided if there is no necessity.

Flood & Earthquake

These types of natural calamities happen rarely. Even if flood occurs in rainy season, the area is specified and is not across the country. So, people living in flood-prone areas may think of taking such policies but for others it is useless.

Kidnap & ransom

Kidnap and ransom insurance covers the risk of ramsom payment to kidnappers. Though all companies don't provide these policies, a few companies do have such plans. The risks covered under such policies are very uncertain. The chance of such an occurrence of this type of risk is negligible and that too restricted to terror affected areas.

Credit Card Loss

Almost all the credit card companies or banks nowadays provides for the security against such losses. They immediately block the card on receiving information about such loss of card. So, taking Credit Card Insurance should be avoided.

... contd.

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