TomorrowMakers ™

Insurance Basics

The Importance of Insurance

23 January 2017
You may think you don't need insurance but you do! Read on to find out why
 

When life proceeds smoothly with no bumps along the road we tend to get a bit complacent about financial security. While it is important to make progress in terms of investments and acquisitions, we should ensure that we are securing ourselves and our assets as we proceed. The process of insurance has been evolved to safeguard the interests of people from uncertainty by providing certainty of payment at a given contingency. This could vary from motor accidents to health problems to property damage and even loss of life. Here are a few reasons why insurance is extremely important for every individual:

  1. Provides security:

The absence of an earning member in the family can make things very rough. Having a life insurance would at least make sure that your family is financially supported in case of some unforeseen incident. 

  1. Encourages savings:

Insurance not only protects against risks and uncertainties, but also provides a secure investment channel as well. The payment of premiums regularly enables systematic savings. The insured gets a lump sum amount at the time of the maturity of the contract. 

  1. Medical support:

Medical insurance policies are ones that cater to expenses incurred from treatment of various health conditions. Since anyone can be a witness to unforeseen illnesses and because the cost of healthcare is rising, a health insurance policy is considered to be essential for every individual.

  1. Transfer of risk:

Insurance functions on the principle of the transfer of financial risk from the insured to the insurer. An insured individual’s expenses are recompensed by the insurer. This reduces the financial burden of paying for vehicle repairs, health expenses etc.

The issue with insurance, however, is that customers are spoiled for choice. There are so many options to choose from, so many different policies to explore, and it can get confusing to choose the right one. That was before we prepared the Lazy Investor’s Guide to Insurance, an e-book that compiles and simplifies everything you need to know in one simple place, in an easy-to-read manner. So now you don’t have to work hard to find time to do your research.

 
 
 

Did you know

"Tax-2"

POLL

 

MOST VIEWED CONTENT

Understanding how student travel insurance works
Insurance Basics

Understanding how student travel insurance works

Given the high cost of medical expenses in developed nations, having appropriate insurance cover is a must for students travelling abroad for education and exploration alike.

6 compelling reasons why you need Home Insurance
Insurance Basics

6 compelling reasons why you need Home Insurance

A home is more than 4 walls and carefully picked out paint. It’s about security, comfort and love. And home insurance is the best way to mitigate any damage that may be caused to it.

Regulations in life insurance industry
Insurance Basics

Regulations in life insurance industry

KS Gopalakrishnan, MD & CEO, Aegon Life Insurance talks on regulations in Life Insurance Industry in India

5 Odd insurance covers you won’t believe exist in India
Insurance Basics

5 Odd insurance covers you won’t believe exist in India

Do you have a valuable possession you always wanted to insure but weren’t sure if it was possible to do so? After reading about these 5 strange insurances being availed in India, you’ll have your answer.

Market Instability & ULIPs in India
Insurance Basics

Market Instability & ULIPs in India

KS Gopalakrishnan, MD & CEO, Aegon Life Insurance talks on Market Instability & Unit Linked Insurance Plans in India

What to do after the death of your next of kin (Part 1)
Insurance Basics

What to do after the death of your next of kin (Part 1)

Parting from a loved one is always difficult and there is no parting more difficult and grievous than the one that comes with death. However, even in such unfortunate circumstances, there are certain obligations that you need to fulfil.

Common mistakes while purchasing insurance
Insurance Basics

Common mistakes while purchasing insurance

KS Gopalakrishnan, MD & CEO, Aegon Life Insurance talks on 'What mistakes do consumers commonly make when purchasing Insurance plans'.

boy

We would love to hear from you!

Question, comment or concern? Our contact form is the best way to get in touch. We will respond to you within 5 working days.

NEWSLETTER