Life is uncertain and unpredictable. One can only have a proactive measure in place to deal with unpleasant situations. Hence, the concept of ‘insurance’ was introduced with a motive to mitigate the risk and to provide protection. Insurance is the primary way of managing life risk. There are various types of insurance policies available today to protect your loved ones and the things you love. In a life insurance policy, Insurance indemnifies to pay the insured person’s family a certain sum of money in the event of the insured’s demise. When it comes to choosing the right insurance plan, you are spoilt with choices as there are various insurance players in the market offering plenty of unique plans.
Importance of insurance
Insurance is an essential cost that one needs to make in order to secure the future of his/her family. Even the financial advisers suggest you avail of insurance before you start with your financial planning. Insurance is an important necessity for various reasons. Following are some of the reasons:
- Insurance provides you with financial security and a safety net:
If something unforeseen happens to the bread earner of the family, the financial situation of the family may come to a standstill. Insurance compensation can become a source of income for the family and stabilize the finances. With insurance, your family is financially secure even when you are not around.
- Insurance safeguards you and your family’s future goal:
The sudden demise of a family’s breadwinner can have the worst repercussions on the family’s financial stability. With insurance, your family can achieve financial stability even when you are not around. Also, their future financial goals will stay intact.
- Insurance encourages savings:
There are various products offered by life insurance companies that not only provide life cover but also provide a provision for wealth creation to achieve future goals. The requirement of periodic investment into such products encourages savings. For example, endowment plans, money back plans, unit-linked investment plans etc.
- Insurance is an effective risk management tool:
The insurance covers uncertainties such as the risk of death, risk of getting hit, falling sick and many more. Insurance is all about managing these risks effectively. Every insurance policy provides coverage against insured risk.
- Insurance provides peace of mind:
As insurance manages risk effectively, you can only make regular payments towards insurance and stay tension-free. Peace of mind is what you get by insuring.
To shortlist the best term insurance plan as per your requirements, we recommend that you click on the button below, fill in a few insurance-related fields and let our system suggest a suitable insurance policy as per your requirements.