Do we need Insurance? What is the importance of Health Insurance

We all have doubts about anything, but the one most concerned is about the risk of life and health. So, what is the role of insurance in our lives, and how is it helpful for us? Insurance is a way to grow your money in the form of premiums that are collected by the insurance company. The company will pay out the claim when it is necessary or when the cover period is over.

It has been proven that having insurance will save you from heavy loss. No one knows what will happen next in our lives, maybe something good or bad. We must always be ready for that. If you have an accident or are hospitalized for any reason, insurance will save you and the money you have invested over years in the insurance company.

I wrote many articles on Insurance and its benefits, but some of you tell me that you all want to read more on this topic, so that’s why I’m here with another, but typically the same topic.

Guys! Many people know how important it is to have insurance for yourself or your family, but I don’t know why they don’t want to use this opportunity to save their own or their family’s life and health. I hope after reading this, some of you can change your mind.

As I said, we don’t know when and from where something unexpected happens, which can put our lives at risk. However, having protection against it is always a good idea, and insurance plays an important role in protecting you and your family when there’s an emergency situation.

Insurance is not all about saving money; it is way more than that. Many insurance companies provide insurance against anything and pay for you if you are hospitalized or have any treatment expenses.

How can Insurance be helpful:

  • Protection against home damage: Many insurance policies cover damage to your home, such as theft, fire, and water damage. If your policy covers this, you can repair or replace any damage. Also, if you have guests in your home and any guest gets injured, the insurance company will cover all expenses related to that issue.
  • It helps you run any small business.  If you are a small business owner, you can manage future risk with the help of your insurance. Insurance-related to business will cover you, your business, and your employees and give you a chance to provide your company with a retirement plan to help you and your employees.
  • Retirement should be secured, there are lot of Insurance plans to apply for- one of them is for your retirement. The premium under this policy collected by the insurance company is like a kid investing their money for a toy that helps him to feel the joy of life. When the policy period is over, then, the collected money will be given to you as a pension.
  • They feel relaxed. I remember once I bought a motorbike from my own first salary, and I have always worried about the damages that may happen to me or others. Then I bought insurance online for my bike, and after 8 months, I met with an accident on the highway, I’m totally fine and actually was not injured much, but my was almost finished. Then I tried to claim my damage from the insurance company and bought the insurance that covered all the expenses. After some documentation and investigation, the insurance company paid all the expenses for my bike damage. That’s why I say again and again that insurance is mandatory nowadays.
  • Develops saving habits. Now, insurance will work like a personal bank for me. I deposit the premium for several years, and the company gets back my money after the policy period ends. Many of us don’t have saving habits, which is not good. Having a saving habit can save you from any emergency.

If there’s an emergency, would the insurance company provide a large settlement?

The insurance company collects premiums and some fixed amount to hold your policy; it totally depends on your insurance policy. Some insurance policy knows as lumpsum because in this type of policy plan, a policyholder pays a fixed amount for a certain period of time, and after when the insurance period is over, the policyholder gets all benefits as promised by the company.

You can get a claim before the cover period time; many people break their insurance plan in between the time period due to any special reason, but remember, this action will put you in a situation where you have to take the risk of loss of profit.

Life insurance | How many types?

As I mentioned above and in many of my articles, what is insurance? Some of you are again asking about its types. Here it is…

  • Term Life Insurance Plans – On low premiums, get a very big profit
  • Unit-linked insurance plan (ULIP) – a chance to invest
  • Endowment Plan – Save your money for the future with the help of life insurance plan
  • Money-Back – Periodic return with the insurance plan cover amount
  • The complete life insurance until death
  • Child’s Plan – Now don’t worry about your children’s future
  • Retirement Plan – Get income after retirement.

Term Life Insurance

Now, this time is all about the pandemic, fear of death, and thinking about what happens with my family is a dangerous question for everyone. We all know that life and death are the truth of nature. We all take tension out of our family members or loved ones and do whatever it takes to make them live in a better world.

Term life insurance will help you solve this problem; you have to pay for a specific period, which totally depends on your policy plan, but the period is between 10 to 30 years.

Suppose somehow you die in between your specific time period. In that case, the insurance company provides a cash benefit to the person whose identity is verified as a nominee in policy documents.

The most important step that you have to choose is when you are applying for term life insurance. Many of you asked me that what is the right cover period under term insurance plan, so the answer of this question is simple – you just have to ask yourself that why are you applying for his term insurance plan and i know the answer “Family & Love once“.

Yes, we apply for this term insurance plan so that when we are not present in a hard situation with our family, this insurance plan will help your family.

The premiums totally depend on the plan and the term period, Have you applied for a long-term insurance plan or a short-term insurance plan?

Premiums, maybe for the long term and the short term, will be almost the same because we don’t have superpowers to predict the future and don’t have powers to stop future accidental situations, and that’s why insurance companies want premiums the same as for the long and short-term both.

I recommend that when you are young and have employment, you should apply for a term insurance plan.

Unit Linked Insurance Plan (ULIP)

The Unit Linked Insurance Plan was announced in India in early 1971; it is totally managed under the Insurance Regulatory and Development Authority of India (IRDAI). Policyholders interested in stock marketing or mutual funds must invest in these on their own.

Now, you have an option under a unit-linked insurance plan that allows you to invest in stock marketing and get all the benefits of a life insurance plan. Over the past 10 years, there has been an increase in investment in ULIP funds. According to some surveys, the investment has been doubled since 2009.

In Unit Linked Insurance Plan, you have options to achieve your financial goals. It provides various options, so you can customize or use the one that perfectly suits you.

Endowment Plan

A life insurance plan is a smart way to avoid future loss. As we all know, the life insurance policy aims to secure your future without affecting your present. But there is a problem with the life insurance plans; you will not get the sum assured for yourself.

This means that if there’s a situation where you need money, like having an emergency, in this type of situation, anyone needs money, but they can’t get any sum assured from their life insurance plan.

And that’s why we here introducing Endowment Plan. The benefits of it are as follows :

  • It is the best plan to generate income in old age. I know everyone wants to collect or invest money to improve their old age, and this plan helps. An endowment plan has many options, like a lump sum in retirement. It can also be a way to handle your medical and other expenses.
  • When you are unavailable for your children but have added them as beneficiaries in your endowment plan, the benefits of that plan or policy will shift to them.
  • Tax-saving benefits: If you withdraw the amount after maturity and your company provides full benefits, you don’t have to pay any tax.

Money Back Plans

There are some money-back plans you can check. If there’s an unpredictable situation, the insurance company will provide you with the sum assured, but only to the nominee of that plan. The person who gets the assured amount can use it as they want, and they can make their lives easy and happy with this.

Many products are in the market to help you get a money-back plan to generate daily income. Also, with the help of insurance cover, it can be easy. Stock marketing, mutual funds, bonds, etc., are ways to generate daily income and get regular returns with the help of insurance plans.

Some Health Insurance Policies in India that you must choose:

  1. Max Bupa Health Insurance
  2. HDFC Ergo Health Insurance
  3. Bharti Axa Health Insurance
  4. SBI Health Insurance
  5. L&T Health Insurance
  6. Bajaj Allianz Health Insurance
  7. Apollo Munich Health Insurance
  8. National Health Insurance

Which one is the Right Insurance Policy? | How to choose

There are many insurance policies and insurance companies in the market, but they have a little similarity in them, which confuses the customer. Some tested points should be noted before choosing any of the plans from any insurance company. Below they are mentioned:

  • Always check and compare Sum Assured
  • Check the age restrictions and renewability
  • Check whether Room Rent Capping is available or not
  • Always determine Inclusion in the plan as well as Exclusion
  • Ensure to check the No Claim Bonus under your policy
  • check if there are Other Benefits in your plan

Final Thoughts

I know many of you don’t have any insurance plan and don’t want to get one just because of some premium charges, but let me tell you that once I met with an accident and got hospitalized, which actually costly for me about 50K INR but thanks for my parents because they bought an insurance plan for me when I was 18. Here, it helps me to handle all the hospital expenses.

Always remember and note the importance- is your money important but not your family? Ask this to yourself. You have to invest your money in the insurance plan, and you’ll get benefits from it whenever it is needed.

If you don’t know what an insurance policy is, what a good insurance policy is, or how to apply for one, then just go and search on the Internet. You can get online insurance for everything, like a bike, car, home, etc.

The End | Thankyou for always showing such great love and response towards my articles, i love the way that you all provide me suggestions and i promise that i will take care of every single suggestion.

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