Anyone can be a victim of critical illness unexpectedly. And rising medical expense is of great concern. Medical Insurance is one of the insurance policies that cater for different type of health risks.
The insured gets a medical support in case of medical insurance policy. Insurance facilitates spreading of risk from the insured to the insurer. The basic principle of insurance is to spread risk among a large number of people.
A large number of persons get insurance policies and pay premium to the insurer. Whenever a loss occurs, it is compensated out of funds of the insurer.
Large funds are collected by the way of premium. These funds are utilised in the industrial development of a country, which accelerates the economic growth.
Employment opportunities are increased by such big investments. Thus, insurance has become an important source of capital formation. Articles in Insurance. You must be logged in to post a comment. Related Articles: What are the Advantages of Insurance? What are the Important Utility of Life Insurance? Leave a Reply Click here to cancel reply. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits.
Asset Allocation Plan Asset Allocation. Customer Reviews. Corporate Policies. Press Releases. Awards and Accolades. View Our Ads. The Importance of Insurance. View Plans Plans. Home Insurance Importance of Insurance. The financial loss to the family due to the unfortunate death of the sole earner can be covered by insurance plans. This will help them cover the costs of running the household through the insurance lump sum payout. They will make sure that your children are financially secured while pursuing their dreams and ambitions without any compromises, even when you are not around Many insurance plans come with savings and investment schemes along with regular coverage.
You pay premiums regularly and a portion of the same goes towards life coverage while the other portion goes towards either a savings plan or investment plan, whichever you choose based on your future goals and needs Insurance helps protect your home in the event of any unforeseen calamity or damage.
Your home insurance plan will help you get coverage for damages to your home and pay for the cost of repairs or rebuilding, whichever is needed. If you have coverage for valuables and items inside the house, then you can purchase replacement items with the insurance money.
Types of Insurance There are several types of insurance plans available. The insurer and the insured get a legal contract for the insurance, which is called the insurance policy.
The insurance policy has details about the conditions and circumstances under which the insurance company will pay out the insurance amount to either the insured person or the nominees.
Insurance is a way of protecting yourself and your family from a financial loss. Generally, the premium for a big insurance cover is much lesser in terms of money paid.
The insurance company takes this risk of providing a high cover for a small premium because very few insured people actually end up claiming the insurance. This is why you get insurance for a big amount at a low price. Any individual or company can seek insurance from an insurance company, but the decision to provide insurance is at the discretion of the insurance company. The insurance company will evaluate the claim application to make a decision. Generally, insurance companies refuse to provide insurance to high-risk applicants.
Insurance in India can be broadly divided into three categories:. As the name suggests, life insurance is insurance on your life.
You buy life insurance to make sure your dependents are financially secured in the event of your untimely demise. Life insurance is particularly important if you are the sole breadwinner for your family or if your family is heavily reliant on your income.
Health insurance is bought to cover medical costs for expensive treatments. It is essential to recognize the importance of insurance in fulfilling long-term goals in life. You do not want your loved ones to compromise on their dreams in your absence. While calculating the coverage amount, remember to factor in various parameters or goals and consider the importance of insurance in meeting such goals. Retirement planning constitutes a significant part of a sound financial plan.
You may not realize the importance of insurance in creating a comprehensive retirement plan, but it can help substantially. Certain insurance policies can ensure a regular income source after retirement. The role of insurance in life after retirement depends on how you invest in the present. When you are working hard for your income, you want to save as much of it as possible. The importance of insurance extends to providing relief in current expenses. Insurance policies are one of the financial instruments that are eligible for tax benefits under the Income Tax Act, Tax benefit are as prevailing tax laws subject to change.
If you always worry about managing income to meet the expenses, it disrupts your peace of mind significantly. For some people, financial troubles may even lead to serious health issues. There is immense importance of insurance in preserving your peace of mind. There is a multitude of options when it comes to insurance policies. It is so because insurance providers understand that each individual has a distinct financial profile.
Furthermore, you need different insurance plans to have coverage for other things in life. Here are the common types of insurance policies. Life insurance policies are fundamental instruments that offer life coverage. In case of the policyholder's demise, the death benefit is payable to the nominee as per policy terms. The importance of insurance is unmistakable when it comes to protecting the financial interests of your loved ones.
There are various l ife insurance policies, such as Endowment Plans, Whole Life Plans, Term Plan, and more that offer distinctive benefits.
It is up to you to decide the features that are desirable for your family members. The importance of insurance is particularly relevant when it comes to protecting your health. Health Insurance is one of the fastest-growing segments in the insurance industry due to the rising costs of healthcare in India.
Buying insurance is important in life because it ensures that you have ample financial support to receive quality healthcare. Apart from your life and health, the importance of insurance also extends to other valuable assets in life. The motor or home insurance policies provide financial support in case of damage to your property arising out of specified conditions such as fire, accidents, human-made or natural calamities, and more.
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