Overview

Insurance is a risk management tool that safeguards individuals, families, and businesses against unforeseen events or losses. By transferring the financial burden to the insurance company, individuals can protect themselves from potential financial hardships.

5 Reasons Why you should Consider Insurance

1. Financial protection: Insurance can provide financial protection in the event of an unexpected event, such as an illness, injury, accident, or natural disaster. This can help you and your loved ones avoid financial hardship.
2. Peace of Mind: Insurance can give you peace of mind knowing that you are financially protected in the event of an unexpected event. This can allow you to focus on other things, such as your health and recovery.
3. Risk transfer: Insurance transfers the risk of financial loss from you to the insurance company. This can help you protect your assets and financial security.
4. Legal Requirements: In some cases, insurance is required by law. For example, motor insurance is compulsory for all registered vehicles.
5. Tax benefits: Insurance premiums are tax-deductible. One can avail of deductions as per Sec 80C for premiums paid and section 80D for Mediclaim etc. This can help you reduce your tax liability and save money.

Types of Insurance

There are two main types of insurance in India: Life Insurance and General Insurance. Health Insurance, which is a sub-set of General Insurance, is also gaining prominence due to the high cost of medical care that needs to be covered.