Why Do We Need an Insurance?
Many people usually wonder ‘why I need insurance’ when they are youthful, healthy and have multiple sources of income. Regardless of how much you earn or how fit and healthy you are, one of the most important financial decisions in life is to save money for an emergency.
Accidents, medical emergencies and untimely death can and do happen. If you don’t have enough money to handle them, you or your family may be left stranded, facing major financial difficulties and setbacks.
Insurance is essential for you to be able to concentrate on the important things in life because it ensures financial security for you and your family in case anything unfortunate happens. When things go wrong, insurance is one way to protect your life, your health, your ability to earn money and to keep a roof over your and your family’s heads.
There are numerous insurance products such as term insurance, life insurance, retirement plan, health insurance, accident insurance, vehicle insurance, property insurance, etc. Any insurance policy’s main goal is to protect you and relieve you of a significant financial burden in the event of a disaster.
The sooner you start, the better! The best time to start building your health and lifetime protection is when you get your first salary paycheck. Early coverage will provide you with peace of mind at the lowest possible premiums. Choose the level of coverage and premium that best suits your needs and budget, and you’ll be able to adjust it as your needs change over time.
Here are the Main Reasons Why Having Insurance is Necessary:
1. Financially Security
No matter how much you are earning or how much you have saved; your financial position can be dented by an unexpected event in a moment. So, the best way to become financially secure is to cover yourself, your family, and your assets with insurance. You can buy or renew insurance online and receive a payout for financial support, in case there happens to be an unforeseen event.
2. Transfer of Risk
The contract of insurance works on the ‘principle of transfer of financial risk from the insured to the insurer’. As an insured, you pay premiums to receive compensation from the insurer, in case of occurrence of an unforeseen event. So, having insurance reduces the financial burden on your shoulders.
3. Complete Protection for You and Your Family
Family is the most important asset that you have and your family also depends on you for financial support. This is why it is important to make sure that you and your family are completely secure to face any emergency.
4. No More Stress or Tension During Difficult Times
None of us can see the future or predetermine the future events. Any unforeseen tragedy can leave you physically, mentally, and financially strained. So, if you have insurance to take care of the outcomes of such tragedies such as illness, injury or permanent disability, even death- you save yourself and your family from tension and stress. With insurance in place, any financial stress will be taken care of, and you can focus on your recovery.
5. Peace of Mind
Having insurance offers you financial security and also peace of mind. No amount of money can replace your peace of mind. So, when you have insurance you know that you are secured against any unforeseen events in life, and this gives you complete peace of mind.
The sum of all these reasons provides enough reason as to why insurance is necessary. and with the convenience that you have to buy insurance online from a general insurance company like IFFCO Tokio to secure you, your family, and your assets, both financial freedom, as well as peace of mind, are pretty achievable.
Insurance is a way of managing risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and payout when there’s a claim.
How Insurance Helps You?
- Life insurance provides financially for your loved ones should you become unable to work. Having this type of insurance enables them to continue enjoying a comfortable lifestyle with minimum worry.
- Health insurance helps pay your bills should you develop certain illnesses or suffer from injury or disability.
- Income protection safeguards your salary by replacing it should you become unable to work.
- Education and retirement plans allow you to achieve what is important to you – be it an overseas education for your children or a comfortable standard of living during your retirement years.
- Endowment plans do more than help you build up savings to pass on to your spouse or children. They can also be used cover medium- to long-term goals, such as a property upgrade, higher education, and perhaps fund a break from work.