Insurance is a risk cover providing protection against a possible eventuality. Insurance is broadly classified as Life Health Personal Accident General 1. Life Insurance is cover to protect income dependency of family and existing and future liabilities. Basic thumb rule is you should have 20 times of your annual income plus your liability as sum assured. Demise of an earning member of family can cause huge emotional as well as financial stress. The financial stress can be reduced by taking adequate term insurance cover. Term insurance is pure risk cover and hence is low cost form of insurance. Personal accidental insurance is also essential as life insurance covers death where personal accidental covers disability. 2. Health Insurance covers potential expense of hospitalization due to health issues. Health costs are increasing at a rapid speed. Hence health insurance for family becomes essential part of financial plan. It is important to take personal health insurance even though individual has group insurance from the company where he/she works. You may change company and join a company where group health insurance is not provided. Company may stop providing group health insurance. To avoid this uncertainty personal health insurance is essential. 3. Personal Accident protects your entire family with Personal Accident Insurance against accidental injuries. The policy provides the benefits to you and your family, for Accidental Death, Permanent Disability, Broken Bones, Burns due to an accident. 4. General insurance: Car insurance, bike insurance are compulsory by law which cover damages to vehicle based of policy rules.