An insurance or insurance policy is a mutual agreement between the individual purchaser of the policy and the insurance company, wherein the former pays regular premiums against the promise by the latter that if any untoward incidence takes place where the protected asset/life/health etc faces damage/death, then the insurance company will cover for resulting expense. In some cases, such as life insurance, you will get returns on the premiums paid when the policy matures, despite being alive. In case of death, the nominee shall receive the decided sum assured with bonus and earned interest on the amount.
Apart from individuals, private and public sector companies can also purchase insurance to protect machinery, assets, employees etc. Insurance policies are thus a way to manage risk so that the insured object, person, etc gets protection against possible eventualities such as sickness, death, damage, loss, etc. Thus by opting for insurance, you are able to reduce financial worries.
Below mentioned are different types of insurances available in India.
You must be thinking, why you need insurance. Trust us; the reasons for it are plenty. Life is full of uncertainties and it is vital that you buy insurance as early as possible in order to protect yourself and your family against all odds. An insurance plans gives you protection and particularly helpful for senior citizens, as at an elder age when income decreases and finances are not enough to cover for health expenses or other urgent incidences, such as breakdown of car, repair or damage of house etc. Many insurance policies offer loan against them, which is another advantage you can vouch on.
There are certain insurances, which do not cover the costs until the eventuality arises. Thus, you may feel you are paying for something that may really never occur, however, taking out insurances for vehicles and home will help to hedge the financial pressure in case the same were to get affected by damages, losses, etc. Some of the insurance policies also fulfil your goal to investment and tax-savings. More importantly, insurances are not just about you, but your loved ones and assets. Thus, investing in insurance is a win-win situation.