If you ever have been in a situation where you’re uncertain of whether or not to get a certain kind of insurance policy, the answer you are looking for is here.
Listen to the article here:Life is unpredictable. And no matter how careful you are, there’s always a chance things can go haywire.
Whether you’re driving to work, visiting a new country or riding your bike to a nearby shop, there’s always the potential for something to go wrong that could turn your world upside down. By having insurance you can safeguard yourself and your family against the unexpected so that no matter what life throws at you, you’re ready when the time comes.
First things first, what exactly is insurance? Well, insurance is a contract in which an individual or entity receives financial protection or reimbursement against losses from an insurer. The company providing the insurance is known as the insurer, and the person or entity purchasing the insurance is known as the insured. There are many different types of insurance, and each type of insurance is designed to protect against different types of risks. For example, health insurance can help protect you from the high cost of medical care, while car insurance can help protect you from the financial costs associated with car accidents.
Categorically speaking, there are two types of insurance:
1: Life insurance
2: General insurance
Wondering which one do you need? Well, you need both.
Let’s deep dive into different types of insurance available and why they are important for you.
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the “benefits”) upon the death of the insured person. The insurer typically requires the insured person to pay a premium, either regularly or as one lump sum. In return, the insurer agrees to pay the designated beneficiary a specified sum of money upon the death of the insured person.
Why do you need life insurance?
To ensure that your loved ones are financially secure, even if you are no longer able to provide for them
If you have debts, life insurance can help to pay them off without putting your family’s financial wellbeing at stake
If you are the primary breadwinner in your family, life insurance can help to replace your income and allow your family to maintain their standard of living
Life insurance also brings tax benefits. You can deduct the premium you’re paying from your total taxable income.
Financial compensation in events other than death comes under general insurance, It’s a type of insurance that provides protection against a wide range of risks, including financial losses resulting from damage to property, health, car, bike, travel, etc. Just like life insurance, you are required to pay a premium against which you are promised a sum to cover the losses incurred.
Examples of general insurance include home insurance, auto insurance, and business insurance. These policies typically cover the cost of repairing or replacing damaged property, as well as any medical expenses or legal fees associated with a covered event.
What are the different types of general insurance available?
There is an exhaustive list of general insurances available. Meaning, you can get almost anything insured, from your home to your mobile phone. But here are a few important ones we think you shouldn’t miss.
1: Health Insurance
2: Motor Insurance
3: Travel Insurance
4: Home Insurance
1: Health Insurance
Health insurance is a type of insurance that provides financial coverage for medical expenses. It can help cover the costs of medical treatments, surgeries, hospital stays, and other medical services. These policies typically have a maximum limit on the amount of money that the insurer will pay out per year, as well as a deductible that must be paid before the insurer will start covering medical expenses.
Some health insurance policies also require the insured person to co-pay for each medical service they receive. Health insurance is important because it can help protect individuals and families from the high cost of medical care, mostly unexpected and unplanned.
2: Motor insurance
Car or bike is a possession that’s dear to most of us. Even a small damage can be a cause of worry, and hence motor insurance is a must for all of us owning a vehicle. Motor insurance, also known as car insurance or auto insurance, is a type of insurance that provides financial protection for vehicles. It covers the costs of damages to vehicles resulting from accidents, fire, theft, natural calamities, etc. Motor insurance is required by law in India and its cost may vary depending on a number of factors, such as the age and model of the vehicle, the driving history of the insured person, and the location where the vehicle is driven. Motor insurance can help protect you from the financial burden of paying for damages or injuries resulting from a car accident.
3: Travel Insurance
Travel insurance is a type of insurance that provides financial protection for individuals and families who are traveling. It covers a range of potential losses and expenses that can arise during a trip, such as flight cancellations, lost luggage, medical emergencies, and trip interruptions. Travel insurance policies typically have a maximum limit on the amount of money that they will pay out for a covered event, as well as a deductible that must be paid before the insurance company will start covering expenses.
Some policies may also require the insured person to co-pay for certain services, such as medical care. Travel insurance can help provide peace of mind and financial protection for individuals and families while they are traveling.
4: Home Insurance
Home insurance is a plan that helps pay for damage to your house or apartment for reasons like fire, burglary, theft, and flooding. It also covers your legal responsibility for things like injuries or property damage to other people. Home insurance is important because it can help protect individuals and families from the high cost of repairing or replacing damaged property. It can also provide peace of mind and financial security in the event of a disaster or other unexpected event.
In conclusion, insurance is beneficial to have and definitely worth the money. When people take insurance, they often worry about the cost because it’s always present in the back of their heads. You need insurance because it allows you to focus on your other responsibilities without having to worry about one particular thing that could lead to trouble in your life. And if you are still worried about heavy premium amounts, you can always pay it using your credit card. It will give you a 45 days credit period along with reward points on your transaction making it a win win!
**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.
- OneScore , December 19, 2022