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3 Insurance Plans That Can Help You Recover From Natural Disasters

NEWS WORLD INDIA | 0
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| November 22 , 2018 , 15:35 IST

On December 26th, 2004, India woke up to the dreadfulness of Tsunami hitting the coastal areas and thousands of people losing their homes and lives to the disaster. Recently in August 2018, the beautiful state of Kerala stood dejected as it faced the worst floods of the century, with hundreds of people losing their lives and thousands losing the shelter above their heads.

Natural calamities like floods, hurricanes, tornadoes, earthquakes, tsunamis, can strike anytime and cause implausible losses to our lives and habitat.

You could lose everything that you have established over the years. But this does not mean that you remain scared all your life. While there is hardly anything you can do to stop these calamities, you can be at least careful enough to secure your financial future by having appropriate insurance covers in place.

The three types of insurance covers mentioned below can help you weather the storm in different ways:

  1. Home Insurance

A natural disaster can destroy and cause massive damage to your house and its contents, wiping away your life savings that you have invested in building or purchasing your house. If you have not insured your home, the first cover you must purchase is home insurance. Home insurance not only protects your home against natural calamities like storm, flood, fire etc. but also covers its contents against damage or loss caused due to burglary, robbery, theft, electrical breakdown and so on.

Apart from protecting the structure and contents of your house, home insurance secures you against third-party liabilities which includes lawsuits for bodily injury or property damage that you, your family member, or your pet might cause to other people. For instance, if your dog bites anyone in the premises of your property, you are covered from lawsuits.

  1. Term Insurance

It takes a completely unforeseen natural disaster such as a flood or earthquake to change the financial outlines of a family. What if you are the only breadwinner for your dependents and you become a victim of such a calamity? Your family will not only suffer from the emotional distress of losing you, but also from financial losses caused due to the natural disaster. Even though nothing can fill the void of losing you, the potential losses associated with such catastrophes can be reduced by purchase of insurance.

Term insurance can help you in this regard as it provides coverage for death caused due to a natural calamity as well. The lump sum amount received by your bereaved family will give them some form of consolation, without having to stress about how they are going to make ends meet in your absence.

Term insurance provides maximum life cover for the lowest premium. Moreover, you can buy different riders along with your basic plan to make it more comprehensive. Many insurers like Future Generali offer riders like- Accidental death rider, critical illness rider, waiver of premium rider and so on.

  1. Personal Accidental Insurance

Natural calamities don’t just claim lives; they can leave one severely injured or disabled as well. In such event, personal accident insurance comes in very handy. This insurance offers financial compensation in case you meet with an accident that leaves you temporarily or permanently crippled.

It offers four types of coverages: death, temporary total disability, permanent disability, and permanent partial disability. In case of death or permanent disability, a lump sum compensation is paid, which typically includes 100percent of the sum assured. For permanent partial disability, a portion of the sum assured is paid, whereas, for temporary disability, a weekly compensation up to certain weeks is paid.

Concluding

When the massive earthquake hit Bhuj, people in Chennai may have felt assured of not living in an earthquake-prone zone. However, little did they know, they will be affected by Tsunami years later. You never know which natural disaster can strike you at which point of time. Hence, it’s better to be always prepared than to feel sorry later.