Let's highlight a few features of insurance:
- It wouldn’t be wrong to say that insurance is a risk management instrument that functions as a fence against an unfortunate loss.
- When it comes to an insurance policy, the policyholders are required to accumulate funds in order to pay the premiums. Thus, when one or a few suffer any loss, the claimed money is delivered from the accumulated amount.
- Insurance coverage is offered for medical expenses, property loss, vehicle, mobile phones, and more. You can find different types of insurance policies that will help you protect yourself, loved ones, and valuables.
- The primary segments of an insurance policy are the premium, deductible and the policy limit. Therefore, when buying the policy, policyholders need to thoroughly assess these aspects.
An insurance policy holds the potential to proffer multifarious benefits. In case of financial trouble, the right insurance policy can deliver financial compensation, eventually offering peace of mind to a policyholder. Let's discuss some benefits of insurance.
Insurance provides financial compensation to combat financial predicaments, therefore saving the insured from financial concerns and guaranteeing peace of mind.
Under insurance, money is acquired from various policyholders. The company carries collective risks and premiums, covering a considerable extent of risk exposed individuals. In case of uncertainty, the payout is created from the fund. Therefore, all the policyholders share the risk of the one who actually sustained the loss.
With insurance, policyholders get a peace of mind since knowing that the risk is managed by the insurer. Insurance shields the policyholder in case of accident, hazards or susceptibilities.
Insurance policies, for example, life insurance allows the policyholder to infuse the habit of saving money. It urges people to save and invest to create a better and secure future. Savings can help you transform your miserable present into a happy future. It holds the power to make or break your life.
1. Health Insurance - Health insurance enables you to take care of your family’s health. It enables a policyholder to take care of spouse, parents', siblings', children's health. Insurance companies maintain tie ups with hospitals where one can get the benefits of cashless hospitalization. This will help you and your focus on getting well instead of worrying about paying hospital bills. Your insurer will settle medical bills with the hospitals.
2. Motor Insurance - In India, it is mandated to buy third party insurance as it presents coverage against damages caused to third parties or possessions. A prospective seeker can also buy a comprehensive policy as it covers damages caused to third parties along with own damages.
3. Travel insurance - Travel insurance covers an unforeseen event that emerges when you are traveling. It is responsible for covering events like flight cancellation, baggage loss, flight delay, etc.
4. Home Insurance - This type of insurance delivers coverage to property, covering financial loss and supplying monetary aid. A policyholder will get coverage for losses that are provoked by flood, theft, mishaps.
The best insurance plan can save you from life's uncertainties that do not just leave a hole in your heart but also in your pocket. Besides the quintessential protection benefits of insurance policies, you can also avail income tax benefits. Under Section 80C of the Income Tax Act, the premium paid to buy life insurance policies are qualified for deduction from the taxable income. Insurance is one of the investment plans that are purchased to protect and brighten your future.