Every year, unexpected illnesses, natural calamities, or accidents can burn a hole in your pocket. It can result in a medical emergency, property damage, or loss of income.

In such scenarios, insurance can be your best bet to mitigate the financial burden. Insurance provides you with an emergency backup to shield you, your family, and your assets, and help you bounce back from a crisis. However, selecting the right insurance plan can be overwhelming.

Here are two insurance plans that can come to your rescue in times of emergencies:.

Health Insurance

Health insurance is crucial for protecting your health and finances. Medical emergencies can take a toll on your savings, and you do not want to worry about finances during such tough times.

Health insurance can cover hospitalization costs, surgery expenses, consultations, tests, and medication expenses. It also provides preventive care and can cover pre-existing medical conditions. Moreover, health insurance plans can help you avoid long hospital queues and ensure timely treatment.

While selecting a health insurance plan, consider the following factors:.

1. Comprehensive coverage

Choose health insurance that covers a wide range of illnesses, including critical illnesses. A comprehensive plan will provide you with adequate financial coverage and also protect you against high healthcare inflation.

Ensure that your plan includes hospitalization, tests, procedures, and medications.

2. Network hospitals and cashless facility

Choose a health insurance plan that offers a broad network of hospitals. It will provide you with flexibility in selecting a hospital of your preference. Moreover, ensure that your plan offers the cashless facility.

This feature will enable you to initiate medical treatment without paying cash upfront.

3. No-claim bonus

Many health insurance plans provide a no-claim bonus. It is an incentive for the policyholders who do not file a claim. In such cases, the insurance company increases the sum insured at the time of policy renewal.

This feature can provide you with additional coverage and also reduce your premium costs.

4. Premium payment frequency and amount

Select a premium payment frequency that suits your budget. You can choose to pay annually, bi-annually, or quarterly. Also, check the premium amount before selecting a plan. Ensure that the premium is affordable and does not strain your monthly finances.

5. Waiting period

Check the waiting period for pre-existing illnesses in your health insurance plan. It is the duration during which you cannot claim for the pre-existing conditions. The waiting period varies from insurer to insurer and can range from two to four years.

Property Insurance

Property insurance can protect your home, personal belongings, or commercial assets from damage or loss. The damage can be due to natural calamities like floods, earthquakes, storms, or due to thefts.

Property insurance can provide you with financial coverage against physical damage or loss. It can also provide you with liability coverage against third-party damages due to your property.

When selecting a property insurance plan, consider the following factors:.

1. Coverage offered

Select a property insurance plan that provides coverage for a wide range of risks. Ensure that it covers damages due to natural calamities, theft, fire, and vandalism. Review the policy in detail to check the coverage for your specific needs.

2. Cost of the policy

Compare the cost of property insurance policies from various insurers. Ensure that you are not overpaying for the coverage provided. Moreover, review the premium payment frequency and amount and select a plan that suits your budget.

3. Reconstruction cost estimation

Get an estimation of the reconstruction cost for your property. It can provide you with an idea of the coverage you need and also help you select the right insurance plan.

4. Deductibles and limits

Check the deductibles and limits in your property insurance plan. The deductible is the amount you have to pay before the insurance coverage kicks in, and limits are the maximum amount of insurance coverage you can claim.

5. Additional coverage

Many property insurance plans provide additional coverage like personal liability, loss of rent, or loss of use. Review the policy documents carefully to know if you need any additional coverage apart from the standard coverage.

Conclusion

Insurance can be the safety net that can protect you from the financial impact of emergencies. Health insurance can help you tackle medical emergencies, and property insurance can shield you against property damage or loss.

However, selecting the right insurance plan can be overwhelming. Consider the factors discussed above and review the policy documents before selecting an insurance plan. The right insurance plan can provide you with peace of mind and help you bounce back from a crisis.