Insurance is an important product that can protect you from unforeseen burden of money. Whether you’re faced with a medical emergency, hit with the costs of an accident or your home suffers damage, insurance means you won’t have to shoulder the entire cost by yourself. Let’s take a closer look at what insurance is, and why it matters.
What is Insurance?
Insurance is an agreement between you (the policyholder) and an insurance company. You make a payment (called a premium) to the insurer in return for financial protection, or coverage, against specific risks, such as accidents, illness, theft and natural disasters.
These are some insurance related terms:
Premium — The periodic payment you make to keep an insurance policy active.
Policy – The actual contract that explains the terms, conditions, and coverage of your insurance.
Claim – A request you make to the insurer to get reimbursed for a covered loss.
COVERAGE — The level of financial protection your insurance offers.
Why Do You Need Insurance?
A big question people have is: Do I actually need insurance? Here are a few key reasons why it is important:
Financial Security
Life is unpredictable. A sudden accident, disease, or natural disaster can incur high costs. Insurance means you won’t have to shoulder these costs yourself, giving you and your family financial peace of mind.
Safeguard Against Unexpected Risks
No one has the ability to see into the future, and insurance acts as a cushion. So, if it is an accident, an illness or a business loss, having insurance provides that you manage the risk effectively.
Health Coverage
Additionally with increasing healthcare prices a health insurance makes sure that you do not skip treatment because of high hospital expenses.
Legal Protection and Liability Coverage
Auto insurance and business liability insurance are a few examples of insurance types that protect you in the event that you are deemed liable for an accident or damage.
Peace of Mind
Having the peace of mind that you and your family are financially covered in a time of crisis. Insurance = less stress = more time for the things in life that matter to you.
Insurance Types You Should Get
Based on your requirement, below are some of the most important types of insurance:
Term Insurance – Offers support to your family for your death.
Health Insurance – Insurance paid for medical expenses that include hospital and costs of any treatment.
Auto Insurance – Covers damages to the vehicle, accidents and third-party liabilities.
Home Insurance – Provides coverage for your property in case of theft, fire, or natural disasters
Travel Insurance – Protects against unforeseen travel problems that arise like medical emergencies, canceled flights, and lost luggage.
Business Insurance – Coverage against financial losses, property damages, and liability claims.
Conclusion
In this era of rapid change, insurance is not a luxury, it is a necessity. It offers financial protection, peace of mind, and safeguards against unforeseen circumstances. From health, life, property, etc., selecting the best insurance policy can lead to a huge difference in your finances.
If you don’t have insurance already, now is you have to consider your options and make a decision!
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