Life Insurance - Crisis Insurance: How To Protect Yourself Against Natural Disasters

As India is vulnerable to natural disasters such as earthquakes, tsunamis and cyclones, here are some insurance covers which you must have to protect yourself and family during any natural calamity.

Life insurance
Life insurance gives you a second chance at life even after you are gone. But does it cover accidental deaths resulting from natural calamities? Yes, they do. The only thing you need to check is what all natural calamities they cover.
Life insurance provides cover in case of death by special perils like fire, storm, cyclone, earthquake, and flood. A term policy supports the family in case of any unforeseen circumstances and the premium rate for the same is normally low.
For example, a 35-year-old man has to pay a premium of around Rs 10,000 on a sum insured of Rs 1 crore. Under this, he can also opt for a rider like accidental disability rider 1which covers disability caused due to an accident. A term policy can be your helping hand when you have lost another.

Home Insurance
Usually, the biggest loss in any natural disaster is the loss of your home. Natural disasters bring loss of life and property, which is beyond repair. When buying a home, most people give little priority to protecting their house from disasters even when home insurance secures the structure and contents of a property. If you have a home insurance of Rs 10 lakh and the damage suffered due to fire and allied perils is nearly Rs 6 lakh, then you will get the cover for those Rs 6 lakh. This means that whatever loss is incurred below your sum insured, it will get covered completely.
Home insurance also provides protection against burglary, damage and electrical breakdowns. You should read the inclusions and exclusions of your policy, it may affect your premium but it will definitely provide you with peace of mind. For example, if you have taken a home insurance cover of Rs 50 lakh, then you will have to pay a premium of Rs 6,000-7,000 which is not much when other benefits like burglary cover, fire, natural calamities like storm, cyclone, earthquake, etc., are also covered.

Personal accident insurance
In a natural disaster, the chances of getting injured are higher than the chances of dying. Though both are unfortunate events, have you ever thought how you would meet expenses in case of a permanent or partial disability. In an event where you are most likely to get injured or disabled, you need a personal accident insurance to act as your backb one. A personal accident cover sustains you in this situation and spares you from financial hardships.

In the case of permanent disability and death, you get 100% lump sum amount of the sum insured and in the case of partial disability, you get some percentage of the sum insured, depending upon the insurance company. This policy can be taken as a rider under your other policy plan but it is more beneficial when taken as a fully matured policy. For example, on the sum insured of Rs 30 lakh, the premium paid would be around Rs 8,000. Under this, for accidental death, permanent total disablement, permanent partial disablement, hospitalisation, etc., you get inbuilt benefits either as a lump sum or full cover depending upon the condition of the patient.

Acts of God never come with a warning, they just strike you. Awareness remains the key to preparedness.

Source : Financial Express back