4 types of insurance every 30-year-old must have

Insurance policies have emerged as a key savings tool for salaried persons, particularly mid-aged individuals. However, with growing uncertainty presented by other asset classes, persons of all ages are seeking refuge in insurance policies that are designed to meet insurers’ demands. Of all available options, we will be discussing here four major types of insurance plans that a 30 years old individual must consider as a sound investing tool.

Types of Insurance plans

Let us first take a look at the different types of insurance plans available for individuals. There are two main types of insurance available:

Life Insurance: Life insurance policies provide financial cover to the family of the policyholder in the event of his death. It secures the financial future of your loved ones even in your absence. Some types of life insurance policies are Term Insurance Plans, Unit Linked Insurance Plans, Endowment Plans, Whole Life Insurance, etc.

General Insurance: General Insurance covers different types of insurance policies like healthcare coverage, automobile insurance, travel insurance, property insurance, fire insurance, etc. These insurance policies mainly cover and provide protection from the damages that can be caused to one’s property or health.

Different types of insurance you need in your 30s

It is essential for individuals to plan insurance by the age of 30. This blog highlights the four different types of insurance plans for 30-year-old individuals that they must subscribe to in order to secure themselves and their families.

Life Insurance Plan

Having a life insurance policy is one of the foremost requirements in financial planning for a 30-year-old individual. At this age, a person tends to have most liabilities and dependent people.

A term insurance plan gives your family financial security in uncertain times even in your absence. This type of life insurance is a pure protection, simple and cost-effective plan, cheaper than other life insurance products. The premiums paid are also affordable.

In case of your death, a term insurance plan provides financial cover to your family that helps them carry on with their normal life and expenses. The amount received by the beneficiary can be used to pay daily expenditures, repay existing debts and any other costs.

Hence, it is advised to opt for a term insurance plan as soon as you begin to earn, as these plans are a simple and affordable way to provide financial coverage in the future. To learn more about term insurance policies, you can read our earlier blog.

Health Insurance

Medical emergencies can strike anyone at any time. You need to be prepared for it. In such times, health insurance plans result in great help. These insurance policies cover medical expenses that arise due to any sudden illness. These expenses include the costs for hospitalisations, medicine costs or doctor consultation fees.

Health Insurance plans are basically of two types. The first is Mediclaim Plans which cover the treatment costs at hospitals. The expenses incurred in the hospitals are reimbursed or paid by the insurance companies. Most Mediclaim plans cover the policyholder and his dependent family members.

Another type of health insurance is the Critical Illness Insurance Plan. These policies cover some specific diseases that may require prolonged treatment. The insurance company makes the payout on the critical illness cover that the customer chooses. The insurance money can also be spent on the change in lifestyle caused due to the critical illness covered in the plan.

Long-Term Disability Insurance Coverage

Long-Term Disability Insurance is for the person who has suffered a massive disability that has led him to be unable to work and earn. If an employee loses his source of income for a long time due to illness, accident or any injury, Long-term disability insurance (LTD) protects him financially as it ensures the employee still receives a percentage of his income.

It is to be noted that this type of insurance policy covers an employee only in the event of a personal accident and does not provide for work-related accidents.

Home Insurance

Along with you, your home also needs protection against certain threats like burglaries or damages. A home insurance policy provides all-around protection and covers not only the structure of your house but also you, your family members and any other liability that may arise.

Home insurance policies are categorized into two parts based on the kind of cover they provide. These are cover for damages and cover for liabilities.

These are the four important insurance policies an individual should have in his 30s. Many other insurance policies also can be opted for. But the formulation of a decent personal finance strategy is a must at this age. It should be noted that an insurance policy is for risk coverage and not meant to provide returns.

FAQs

1. What insurance should I have at age 30?

A life insurance policy is a must at the age of 30.

2. What are the 3 most important insurance?

A Life Insurance Plan, Health Insurance Plan and Long-Term Disability Insurance are three most important plans.

3. Is it worth getting life insurance at 30?

Yes, having life insurance at the age of 30 is a must. However, it should be noted that insurance policies are for risk coverage and should not be meant to provide returns.

4. What kind of life insurance should you get?

A Term Insurance Plan is the most basic type of life insurance plan that you should get.

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.