What is an Insurance and Why do we need Insurance?

What is an Insurance and Why do we need Insurance?

Insurance is a legal agreement between two parties i.e. the insurance company (insurer) and the individual (insured).

Insurance acts as a safety net that financially protects you and your family when chips are down.

In simple words, You pay a monthly or yearly fee to the insurance company to insure your life, health, vehicle, property, etc for a certain period.

In return, the Insurer pays for the financial damages in case of any harm to the insured person or object.

3 Reasons to buy an Insurance

Financial Stability
Having Insurance helps your family cover the expenses they might face due to your untimely death or cover medical expenses.

Peace of Mind
When you pay Insurance Premium, it acts as a guarantee that your family will get compensated during an unforeseen event.

Reduce Stress
Having adequate insurance helps in the sense that at least you don’t have to think about money during such a hard time.

Why do we need Insurance?

Why do we need Insurance when we are young, healthy, have multiple sources of income, and live the best of our lives.

Regardless of how much you earn or how smooth your business is going on, how fit and healthy you are,

The most important financial decision in life is to save for an emergency. and Insurance helps you in Emergencies.

Financial Backup
Unexpected emergencies can leave you and your family facing tremendous emotional strain, and Insurance helps you plan emotionally and financially to rebuild your life.

Securing Future
Life is uncertain. With term insurance, you will be securing your family to help them receive a lump sum amount to help them take care of their needs.

Securing Retirement
A retirement policy insurance plan that helps you to save part of your income for a long-time, accumulated income will be given back to the insured person as a pension.

Peace of Mind
Insurance policy along with financial security gives you peace of mind as insurance helps you during any crisis.

Encourage Savings
A money-back policy, helps you create savings by allocating some funds in form of a premium, and the amount is paid to the policyholder after some years.

Have you taken Term-life Insurance?

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