“There are several emergency exits on this aircraft ( 2 forward, 2 over each wing.) “said the air hostess before the flight took off.
“Why is she telling about the emergency exit? “asked my son. “Would we have to use it?” “No No..its just for information. Incase awe have some problem during the flight and we have to leave the aircraft so she is telling us. “Prewarned is prearmed,” I said. “Its’ just like you wear helmet and pads while skating so that if you fall you will not get hurt”. He was satisfied and started reading his book as I sat down to write down about how important it is to be protected.
Given the uncertainties of life today it is imperative to be financially ready to ensure that all your life stage goals are met. If the sole breadwinner of the family dies dreams of family may also die. It could mean unnecessary hardship for your loved ones and you.
Insurance is very important. Insurance is the first thing you should look at before investing—it’s critical, Different kinds of insurance help protect you and your loved ones in different ways against the cost of accidents, illness, disability, and death. Hence, before anything else, it is critical to determine your life insurance need for the sake of your family. The way for most people to mitigate these risks is through insurance products, such as life health, auto insurance
Even though insurance is synonymous with protection, insurance is often purchased more from either an investment/tax savings perspective rather than its true purpose of protection.
There are different types of insurance that are available for consumers such as Home, automobile, life a. happen. For the most part, this protection comes in the form of money. Insurance provides protection from liability, damages, and financial loss.
Why should you buy insurance
Why Buy Life Insurance
Well, regardless of how much you earn, no one knows what the future holds. What if something happens to you, and your family is left without an income stream? Life insurance, of course, is probably the most familiar form of insurance and plays an important role in protecting family dependents from possible financial hardship. Life insurance isn’t the problem—it’s the solution for the problem Life Insurance is needed to ensure that family has financial support in the event of death of bread earner and to finance long term plans like children’s education, marriage.Anyone who has a family to support and is an income earner needs Life Insurance. Types of Life Insurance are
- Term Plans: is a no-frills, low-cost option to secure financial security for the family
- Endowment Plans: if policy holder dies during the policy term, nominee gets the sum assured plus some returns; if he survives the policy term, he gets back the sum assured and returns.
- Money Back Plan: A portion of the sum assured is paid out at regular intervals. If the policy holder survives the term, he gets the balance sum assured.guaranteeing a regular flow of income at fixed stages in our lives
- Whole life plans: A whole life policy covers a policyholder against death, throughout his life term as the name suggests unlike limited terms of the other plans.
- Unit Linked Plan: Unit linked Insurance Plan or ULIPs are life insurance and investment plans. Part of the premium provides insurance cover and the balance is invested.
Health insurance
Buy health insurance when you don’t want it, because you may not get it when you want it. Health insurance is a type of insurance that pays for medical and surgical expenses that are incurred by the insured. The type and amount of health care costs that will be covered by the health plan are specified in advance. Health Insurance provides risk coverage against expenditure caused by any unforeseen medical emergencies. Due to high medical inflation rates, failing to hold an adequate amount of health insurance cover can prove to be a major personal finance disaster. Currently, a majority of the salaried professionals are dependent on the health insurance coverage provided by their organizations. But that is not sufficient. It is better to go for health insurance plans. Health plans are available in various formats:
- Individual Plan: In an individual policy you are personally the owner of the policy.
- Family Floater Plan: It is similar to individual health plans i.e one owns the policy but it is extended to cover your entire family. It enables the family members to claim access to a larger shared pool, than individual covers, considering the low probability of the entire family getting hospitalised in a single year
- Group Plans: In a group plan, the sponsor owns the policy and the people covered under it are called its members.
Home Insurance
Your home is likely to be your largest financial investment. It is also subject to natural disasters, burglary, etc. Since your house is one of your biggest assets, it makes sense to insure your house and its contents.
Structural Insurance Policy: This type of home insurance covers the structure of your house from any kinds of dangers and risks. In addition to this, the policy also protects any permanent fixtures within the house. This includes your kitchen and bathroom fittings, and also the ceiling/roof of the insured house
Contents Insurance: It is not just the house but also the contents of the house are insured
Comprehensive Insurance: Content insurance cover won’t cover any structural damages to your home in case of a natural calamity. While a structure-only policy will not cover your house valuables in the event of a robbery. It is always a good idea to select a home insurance policy that offers both types of protection.
Related Articles:
- Insurance: Types of Term Plan
- What is Car Insurance,
- Cost of owning a Car
- Basics of Insurance
- What are Top Up and Super Top Up Health Insurance Plan
- What is Electronic Insurance Account or eIA?
If nothing else, peace of mind is the main benefit of having Insurance. Which insuance do you have and why?
