by charging a particular fee yearly or monthly by Insurance company
Insurance is an idea in which everyone who wants protection from a particular disaster will pay a small amount company will collect the amount from each and every person who have made contract with them by massive money collection by people will get by company wherever accident,loss happen that area only company covers from people's money from the people for the people security
Again only who made Insurance that company and person can benefited not everyone
In insurance whatever is the damage cover everything is full-fill by insurance company
It is very important to read terms and conditions of every company before buying policy
If accident happen and you claim policy in company but in company's terms and condition if it is not applicable then company will not release the claim amount
So very careful when buying a insurance policy most people choose cheap policy but most of the time it won't cover all unhealthy situations
Don't buy cheap policy unless see whether it cover all terms and conditions which beneficial to you in future
Now you understand what is insurance And why it is important now we will move on to type of insurance and its benefits
Term insurance or life insurance
Life insurance is mostly done for family security in the name of family head if family head earning body die then a particular claim amount given to his or her family for country like india term insurance is very important where one person or two person will earn whole family bread
2. Health Insurance:
- With rising healthcare costs, having a comprehensive health insurance plan is indispensable.
- It ensures access to quality healthcare without straining one's finances, thereby promoting overall well-being.
3. Life Insurance:
- Life insurance offers peace of mind by providing financial support to dependents in the event of the policyholder's demise.
- It serves as a lifeline for families, ensuring they can maintain their standard of living and pursue their goals even in the absence of the primary breadwinner.
4. Protection of Assets:
- Insurance safeguards valuable assets such as homes, vehicles, and businesses against various risks.
- Whether it's damage from natural calamities, theft, or accidents, insurance coverage minimizes financial losses and facilitates swift recovery.
5. Retirement Planning:
- Insurance products like pension plans and annuities help individuals build a corpus for their retirement years.
- By systematically investing in these plans, Indians can secure a stable income stream post-retirement, ensuring a comfortable lifestyle.
6. Tax Benefits:
- Many insurance policies offer tax deductions on premiums paid, providing additional financial incentives.
- This encourages individuals to invest in insurance products as part of their overall financial planning strategy.
7. Mitigation of Risks:
- India is prone to various risks ranging from natural disasters to health epidemics.
- Insurance acts as a bulwark against these uncertainties, enabling individuals and businesses to bounce back from setbacks with resilience.
8. Access to Loans and Credit:
- Having insurance coverage enhances one's creditworthiness, making it easier to secure loans and credit from financial institutions.
- Lenders view insured individuals as lower-risk borrowers, thereby offering more favorable terms and conditions.
Overall insurance is like protection for a person,family or company for unfavorable conditions and it is very important to choose right insurance according to your needs