Importance of Insurance Planning

Importance of Insurance Planning – The sense of satisfaction and relief you get when you know your loved ones are financially secure is unmatched. Financial security is an essential part of a person’s life because they know that uncertainties can happen at any moment in life.

Events like unfortunate death or medical emergency can take place anytime, and they might involve damage to your vehicle, property, etc.

In situations like these, you’ll have to burn your savings to do everything to take care of the expenses. Hence, it is crucial to get an insurance plan for you and your family to protect them financially.

Why is Insurance Important? – The True Benefits

Insurance plans can keep you and your family in the times when you face a medical emergency, or some unforeseen event takes place. There are several benefits that you can get with an insurance plan, and these are:

1. An insurance plan can help pay for the medical emergencies, hospital expenses, and medical care required in the future.
2. The insurance amount can help a family financially if the family’s sole earner dies. Moreover, the insurance amount can help them take care of all their expenses.
3. In case of the policyholder’s demise, the family will have to cover all the expenses. In addition, if there is an outstanding loan amount, it will only burden the family. The insurance amount can help them take care of such debts.
4. Insurance can be a great way of saving taxes. The benefits extend to providing relief in the current expenses. Insurance is among the financial instruments to help you avail tax benefits under the Income Tax Act, 1961.
5. Insurance can help you in protecting your home from any unforeseen damages. The home insurance plan covers the damages caused to the house during such an event. This coverage can get the beneficiary the money they might need to repair or rebuild their home.
6. If you travel every day by your car, you must have experienced some close calls that could’ve been fatal accidents. Therefore, a person should get car insurance and health insurance to protect themselves and their car.

Importance of Insurance Planning – Famous Insurance Types

There are different types of insurance plans that are available for people. These are:

1. Life Insurance: Life insurance allows you to safeguard your family in case of your death. A lump sum amount is given to the deceased’s family if the policyholder dies within the policy period.
2. Health Insurance: This type of insurance is to cover the medical expenses of a person. These expenses revolving around various health issues cover hospitalization, treatment, and other costs.
3. Home Insurance: This type of insurance covers the cost of any damage to the house during any mishaps and natural calamities.
4. Auto Insurance: This type of insurance is for cars and bikes. This covers damages caused by natural calamities, accident repairs, and damage coverage for third-party cases.
5. Children Plans: This type of insurance is a saving scheme for a parent. A lump sum amount is given to the children after a certain age to pursue higher education or something else. The child is the recipient of the funds, and the parents are the policy owners.