Protection plans are mainly purchased to meet accidental damage or loss. It includes a different range of insurance policies, like income protection plans, life protection plans, asset protection plans, term insurance, travel insurance, and much more. But, have you ever wondered how you can decide if the protection plan is actually protecting you or not? Scroll this blog down to find the answer.
What is a protection plan?
As the name suggests, a protection plan includes insurance policies designed to ensure security and protection. In layman’s example, the extended warranty card you apply while purchasing your brand-new watch is also a kind of protection plan for that particular goodie. Similarly, the financial interests of the individual and his family are also protected by a protection policy.
Who needs a protection plan?
Anyone who wants to safeguard his property or life should invest in a protection plan. It can be an entrepreneur who protects his business property with an asset protection plan or any individual who protects his life by purchasing life insurance or term insurance.
Types of life protection plan:
There are different types of life insurance for protecting the future stability of the policyholder and his family. For example,
- Term Insurance
- Child Insurance Plans
- Savings Plan & Investment
- Term Insurance with Return of Premium
- Unit Linked Insurance Plans
- Endowment Plans
- Money Back Policy
- Whole Life Insurance
- Group Life Insurance
- Retirement Plans
There are several benefits of life insurance. For example, tax savings, minimum risks, high returns, etc. All these categories of life insurance are also known as protection plans.
How to decide if a protection plan is protecting you or not?
Wondering how you can choose the right protection plan for you? Here are the key points that can help you to decide if the protection plan is actually protecting you or not:
- First, analyze the need for a protection plan in your life and why you need it for your family, property, or yourself. Then choose the best protection plan as per your regular income plan.
- Your insurance company must take your side, in your extreme time, like when you need the money most.
- Your protection plan must claim the security of your nominees’ financial security in your absence (or death).
- Always trust the best insurance company in the market authorized by most of the market.
- Your protection plan should grant you power of attorney.
- Find out the premium you need to pay for your protection plan, compare the amount the insurance company will pay you on maturity or term conditions, and calculate the benefits and return on the investment.
- Check if your protection plan is actually worth it or not. Extending the warranty scheme on a year-old watch is a wise choice, as the in-purchase warranty card of the product might expire at this tenure, but doing the same for a new watch is not worthwhile.
And, concluding, don’t forget to compare the price of the best protection plans in the market among different insurance companies. Only a reliable insurance company can be trusted in hard times.