Types of Insurance & Benefits: Know the Power of Insurance & Credit Cards Together

Before we start talking about why insurance and credit cards can be a great duo, let’s talk more about insurance, the types and benefits. And why yet another blog about it? Well, as guilty as charged, we all have skipped buying insurance many times. The procrastinator in us wins more often than not. And we are sometimes way too hopeful about the future. We should be, but not at the cost of logic.

So, just a refresher here. From insuring your car to insuring your hand just in case you are a hand model There are many types of insurance that exist. But, Insurances can be broadly categorized into two types - general and life.

Here are some types of general insurances

Vehicle insurance - in case your vehicle suffers any damage or theft, you’ll receive a payout from the insurance company as per your policy.

Gadget insurance - laptops, phones, refrigerators and what not. If you have the insurance you’ll receive payouts in case of damage or theft as per your policy.

Health insurance - it’s a no brainer. Hospitalization charges should be the last thing we should be worrying about in case of emergencies. Health insurance not only buys you cover for hospitalization and illnesses, it also buys you peace of mind with cashless payments. Which means, if the concerned hospital comes under the insurance’s network, you’ll be able to get treatment without paying anything from your pocket as per your policy.

Travel Insurance - Flight cancellations, lost baggage, hospitalization while traveling to a different country, all can cost a bomb. But it wouldn’t blow your pocket if you have this. Travel insurance also saves you from domestic flight delays, cancellations, and lost baggage.

Home insurance - built your dream home? Well, we bet you don’t dream about all the calamities, like earthquakes, fire etc. Make sure to have this insurance while you build your house.

And what about life?

Here are some types of life insurances

Term life insurance - Not to sound morbid, but you never know when an unforeseen circumstance arises, leading to death. More than often people are worried what will happen to their family when they are no longer around. Term life insurance provides a cover to your family making sure your family is secured financially after you.

Whole life insurance - you’ll be covered till you cross the age mark of 100. And if you manage to hit the century, you’ll get back the premiums you paid as per your policy. P.S. Premiums in simple terms is the money you pay to be a part of the insurance plan.

Endowment - you’ll have to pay premiums for a specific time period, if you live past that you’ll get a lump sum payment.

Unit-Linked Insurance Plans - It’s like investment and insurance. A part of the premium is invested in different securities like shares, and the remaining amount goes to be a part of insurance plans.

Children Plans - if you have a child, they’ll want to study in a good college, have a good wedding and what not. Child plans help you to be well prepared when such things come up.

Benefits of Insurance at a glance!

Well apart from peace of mind, you also get to save and invest depending upon which insurance plan you go for. But, here’s the deal, health insurance also lets you save tax under section 80D of the income tax act. So that’s a win win.

But, the real benefit of having insurance is that, during unforeseen circumstances it provides you financial assistance for your losses and damage. It prevents burning a hole into your pocket

Insurance and credit card duo

Simply put, sometimes the insurance premiums can be high and not affordable at a particular point in time. What a credit card does is provide you with a 40-50 day period to pay those premiums. Not just that, with One Credit Card you’ll be able to convert your insurance spends to EMI, any time in the app. You can split your premium amount over months, as per your convenience.

You will also earn reward points on your transactions. And since the amount is big, you can also get 5X reward points on your purchase. So what are you waiting for? Pay your insurance premiums using OneCard and enjoy the benefits.

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