Should you opt for multiple insurance products?

Planning for the future is a common process. Everyone wants to secure their future financial needs, be it your marriage, funding your children's higher education, building your business, etc. Though there are a host of financial plans that promise to protect your future, the best way to secure your future against any kind of uncertainty is Insurance.

Insurance provides security against sudden death, loss or damage to property, accidental and theft security to vehicles, etc. By investing in a proper insurance plan; one can secure himself from any possible financial uncertainty which in his belief may occur to him. In today's world, there are varied products present in the market which can be taken to secure any particular object.
Earlier, there were only few insurance plans present in the market like; Life insurance to cover one's life, Vehicle insurance to cover a vehicle and General insurance to cover property. Today you can insure almost anything and everything like;
-          Any particular organ or part of the body.
-          Health insurance for critical illness.
-          Insurance related to cyber world i.e. 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.
Now the question arises, do we really need to insure all our assets? The answer is definitely no. All policies are not meant for everyone. One has to be very selective in what he needs and what he purchases.
So, here is a list of insurance products that should be avoided, unless of course a situation arises!
Flood & Earthquake Insurance
This insurance provides security against losses that may occur to the property and belongings of the insured due to flood or/and earthquake. However, these types of natural calamities happen rarely. Even if a flood occurs during monsoons, only certain areas get flooded in the country. People living in such flood prone areas may consider such policies but for others, it is completely useless.
-          Kidnap and ransom Insurance
Kidnap and ransom insurance covers the risk that may lead to financial pressure occurring due to heavy money demand in the form of ransom in lieu of Kidnap. Though all companies don't provide these policies, a few companies do have such plans. The risks covered under such policies are very uncertain i.e. it may occur or may not occur. The chance of such an occurrence of this type of risk is negligible and that too restricted to terror affected areas. So the need to have such policies should be analyzed properly, and should be avoided where not needed.
-          Credit Card Loss
This policy provides security against probable financial loss that may occur in the event of the loss of a credit card. The loss may arise in form of misuse of the card, withdrawing cash on the card; purchases made through the card, etc. 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.
-          Disease Insurance
Good Health Insurance policy covers all major diseases related to heart, kidney, cancer, etc. They also provide for regular health checkups, accidental treatments, critical illness, etc. So, any policy, which is meant to cover any specific disease or any disease, which is not normally covered under health policies, should be avoided.
Example: Insurance for Vision is a policy to cover risks associated with eyes because most of the traditional health plans don't cover eyes. However, normally the expenses related to eyes are the cost of lens, specs, etc., which can be easily borne by one without any insurance plan. So taking disease insurance should be avoided.
-          Products for old age
Most of the companies, including the specialized health Insurance company hardly cover the members of old age, i.e. above the age of 50 years. There is no such product available in the market which completely covers the aged or senior citizens. All products for them are very rigid in terms and conditions and costly too. Even if someone takes this policy, he has to compromise and settle for a lot for claims. Further, the existing diseases are not covered under such plans. So, taking such a policy should be avoided. If you compare the different products available in the market for senior citizens, you will realize there is no such plan, which can provide better security due to age problems. So, either the policy should be taken at the right age otherwise you should not pay for it in the form of taking wrong policies or paying all such expenses from your pocket.
Insurance companies are there in the market to do business, and they will keep coming up with different plans to appeal to the customer's need for security but as a customer, you should keep your eyes open and undertake a proper research and study about the plan before purchasing the same. Just don't opt for an impulse purchase that is brought on from sudden insecurity, think carefully, weigh the pros and cons and decide if it is really essential for you! Every Rupee earned by you is precious, and you should value it. So make a sound judgment call before taking up any insurance plan and try to avoid product that are unsuitable for your circumstances.