Why must you get a health insurance above all?
We all are advised to shop for insurance quite once – for all times, health, and even for purchasing a replacement car or starting a replacement business.
But, often we recoil from buying insurance, thinking why do I want to shop for life or insurance being a young and healthy person? Or, why do I want insurance for my car, I even have good driving skills?
Contrary to such thoughts, regardless of how healthy we are or how well we do financially, or how good a driver we are, we all need insurance. This is just because insurance acts as a security net that financially protects you and your family when chips are down.
In this blog, we'll talk all about insurance, i.e. what it means, what are the foremost essential sorts of insurance, and why it's important.
What is insurance?
The concept of insurance is extremely simple to know. You pay a monthly or yearly fee to the insurance firm to insure your life, health, vehicle, property, etc for a particular period. In return, the insurer pays for the financial damages just in case of any harm to the insured or object.
So you're transferring the danger of a loss you would possibly experience thanks to life’s uncertainties to an insurance firm for a little fee. For example, if you meet with a car accident and wish to be hospitalized. Your insurance policy will cover the medical costs for hospitalization. And, your car insurance will pay for the damages to your car. Meanwhile, if you die during the accident, your family will receive a payment amount for your insurance.
From arts to pets, there's insurance available for a variety of things, and one should avail of insurance as per their needs and priorities.
But there are 4 types of insurances that are most essential.
The 4 most important insurances are:
Life insurance financially protects your family in case you die an early death. Here is how it works. You pay a regular premium to the insurance company for a specific
number of years. In return the insurance firm pays a sum assured to your family if you die during the policy tenure.
There are different types of life assurance policies and in a number of those, you get a payment amount if you reside through the policy tenure. For example, insurance provides higher coverage for a lower premium amount as compared to other life assurance policies. But no money is paid to the policyholder if he survives the term. Meanwhile, for policies like endowment or moneyback, the policyholder receives payment after the policy tenure ends. For such policies, premium amounts are much higher against the coverage, as compared to insurance.
Health Insurance may be thanks to making sure you and your family can get the simplest medical aid without you worrying about the value.
In a health insurance policy, the cost of medical treatment of the insured persons is borne by the insurance company. In exchange for a regular premium paid by you, the insurance company pays for all the expenses related to an illness for which the insured person needs treatment. This includes hospitalization, daycare, post, and pre-hospitalization, etc. And with the cashless facility, your bill is directly settled between the company and the hospital
Such insurance is availed to insure properties, cars, businesses, etc. On buying property insurance -like car insurance, home insurance, business insurance, in case of any damage to the insured object or property during the policy tenure, the insurance company will financially compensate the owner of the policyholder.
Everyone desires to get the benefits of having their own vehicle but, Owning a vehicle has become a necessity in today’s date as it reduces the dependence on public transportation and if you buy a vehicle and maintain it the right way then you can even get the monetary and other benefits out of it. However, lack of discipline while driving and improper road conditions often increases the number of accidents and such event may cause damage to not only to your vehicle but will also cause bodily injuries to yourself.
In order to protect yourself from the financial burden of such events you should invest in a good vehicle insurance which will cover the compensation of all these costs.
Now that you simply know the important sort of insurance, let’s mention why does one needs insurance.
Reasons everyone should get insurance
As we said at the beginning, most people think insurance is an unnecessary expense. The reason is that we feel confident about our future and our ability to tackle unseen circumstances. But there's an enormous difference between our perceived ability and reality. For instance, a couple of years of savings can vanish just in case of a medical emergency. That’s just one example.
Here are 3 reasons why getting insurance is important
1: Insurance ensures the family’s financial stability
No matter what proportion you've got managed to save lots of or what your monthly income is, an unexpected event can burn an enormous hole in your pocket or can simply jeopardize your family’s financial future.
For example, if you are doing not have adequate life assurance, your family may need to travel through financial hardship if you were to satisfy with an untimely death. Though no amount of cash can replace the loss of loved ones, having life assurance would save them from browsing financial hardship. Meanwhile, if you or your family don't have enough insurance, then huge medical bills during any treatment can completely shake your finances.
So it's essential that you simply cover yourself, your family with an adequate amount of insurance.
2: Insurance brings peace of mind
The premium you pay to the insurance company is the price that guarantees that the insurance company will cover the damage in case of an unforeseen event. And, that guarantee that your risk is roofed brings peace of mind.
For example, let’s suppose you die an untimely death at a time when you still have several milestones to achieve like children’s education, their marriage, a retirement corpus for your spouse, etc. Also, there is debt as a housing loan. Your untimely demise can put your family during a hand to mouth situation. But, if you'd have bought insurance considering these factors, your family would be ready to breeze through during the adversity.
3: Insurance reduces stress during difficult times
No matter how hard you are trying to form your life better, an unforeseen event can completely turn things the wrong way up, leaving you physically, emotionally, and financially strained. Having adequate insurance helps within the sense that a minimum of you don’t need to believe money during such a tough time, and may specialize in recovery.
For example, suppose you or someone in your family had a heart attack and needs immediate hospitalization. Such treatments at good hospitals can cost lakhs. So having insurance during this case, saves you the concerns and stress of arranging money. With insurance in situ, any financial stress is going to be taken care of, and you'll specialize in your recovery
Having insurance – life, health, and liability – is an important part of financial planning. It can save you from financial hardship in case of any unforeseen circumstances. However, the choice to shop for insurance should be determined by three factors – the requirement, the advantages you get from the policy, and your ability to pay the premium.