In this uncertain journey, unforeseen occasions and difficulties keep coming across our path. From sudden health-related issues to abrupt mishaps or catastrophic events, life is full of unreliable challenges and problems. In such unpredictable situations, having insurance becomes a lifesaver. This is where we recall the need for insurance in our lives and after it.
This blog underlines the need of insurance and the reasons why insurance plays an essential role in our daily lives.
What is Insurance?
Insurance corresponds to a security plan. It's like having a companion you can rely on at any time of need or emergency. Signing up for insurance is a safety agreement between you and the insurance company.
You must pay them a small amount regularly, almost like a club membership fee. In exchange for that money, this insurance company promises to be your financial help if something unexpected happens and comes to the rescue by lightening up your financial burden.
This unexpected thing could be anything from getting into a car accident, getting diagnosed with a disease, or even any kind of natural disaster like flood, tornado, fire, etc. In these kinds of unforeseen situations, the need of insurance companies rises since they provide a helping hand to cover your uncertain expenses.
What is the Need of Insurance Policies?
The insurance company is a financial support you can fall on when you are in trouble. Life comprises many twists and turns all along the way. It can be interesting sometimes, and sometimes things can turn out wrong when we least anticipate them, making it a whole mess.
The need of insurance policies can be justified because insurance gives us the protective cover that helps us in a challenging situation and helps in financial management. It takes care of the expenses when something terrible occurs, such as going to the specialist, reconstructing the property, fixing our vehicle, and dealing with medical bills; insurance is there to lighten the load. Along with the cash, it’s there to lighten up our stress until we recover financially and return to the average pace of life.
What are the Six Most Common Types of Insurance?
There are several insurances explicitly tailored to cater to certain types of needs. Some types of insurance are Health insurance, Auto insurance, Home insurance, Travel Insurance, Life Insurance, Pet Insurance, Business Insurance etc. Let us dive deeper into this and get to know why we need such types of insurance one after the other.
Health Insurance: Taking the burden to care about our health
There are such situations sometimes when we get highly sick or diagnosed with a hazardous disease and need to go to the doctor for some surgeries, medical treatments, and care, which can be very expensive.
Health insurance policies then proves to be a boon support that assists us with paying for the high-priced clinical staff and care. It covers specialist visits, remaining in the emergency clinic, and getting medication. With medical coverage insurance, we can zero in on getting better without taking a lot of stress and burden over cash.
As per Statista, 37% of the people in the country, around 514 million, were covered under health insurance in 2021 . Still, about 400 million Indians do not have access to health insurance and its benefits.
Auto Insurance: Keeping our Vehicles Safe
Now, a type of insurance, like Auto Insurance, performs its duty to keep our Wheels and vehicles on track and safe. The comfort and the convenience of the vehicle combine with many possibilities for many mishaps that can occur.
We could meet with an accident, some vehicle parts might fail, or somebody could take our truck without inquiring illegally. Around 461 thousand road accidents happened in India in 2022 alone. Collision Insurance helps us fix the problem or get another car on the off chance of a mishap.
It also helps us if another person gets injured because of our vehicle. In 2019, around 80 percent of cars in India were covered under auto insurance. It is mandatory in many places and provides financial security in case of accidents and mishaps regarding our automobiles.
Home Insurance: Safeguarding our homes
Home Insurance is another important, yet one of the least talked about insurance types . Home insurance policies guard our shelters from unforeseen challenges. Home insurance doesn't offer support in the miserable situations of our home getting struck by lightning, catching fire crossing a flood, or being destructed due to short-circuiting or any disaster. It helps us rebuild and recover from these pitiful conditions.
Income Protection Insurance
How will you survive and care for your family in this inflation era if due to specific x..y... z.. reason? It could be sickness, or it could be a situation of loss of employment.
You need not worry when you have income protection insurance. It helps us have a regular cash flow in our homes when we can't procure it ourselves. The income protection insurance plan takes care of money in our hour of need, so we can pay for things regardless of whether we can't work for some time. The fun fact is that only many workers are still not covered under income protection insurance.
Life Insurance: Saver After Life
It is not a great piece of thought about what will happen to our family when we are gone, and it’s more terrifying if you are the family's only breadwinner. Everyone wants a secure future for their family and children, even when they are away from the world.
In this terrible emotional trauma and crisis, a Life Insurance plan becomes a comfort and helps manage family finances. It also assists in refunds for things and ceremonial items and allows the family to give a dignified farewell to the departed soul. Life insurance policies also address any debt we leave behind so our family can pay the due amount.
It’s not merely insurance but a thoughtful gift to our family to care for them even when we are not there for them. According to the reports, the insurance penetration in India was around 4 percent in 2023, most of which comes from the life insurance sector.
Business Insurance
In simple words, Business insurance protects our business. It’s well known that doing business involves many risks, in any case, if something turns out badly if some or other troublesome issues are there. It includes various issues like Property damage, liability issues, Business interruptions due to disasters, worker injuries, employee thefts, etc.
So you can just intelligently figure out your business's problems and select the best business insurance plan. There are several business insurance policies that you must see if you run a business. These business insurance are commercial property insurance, workers' compensation insurance, product liability insurance, cyber liability insurance, etc.
However, According to the Next Insurance survey, 96% of small business owners do not know about small business insurance.
Other types of insurance include pet insurance, travel insurance, etc. The need of insurance is seen from the fact that each insurance type has been specifically made for some or different unforeseen, troublesome situation.
Conclusion
Eventually, insurance refers to a form of well-being cover for our lives. When things don't go as planned, it is there to assist. Whether dealing with our well-being, safeguarding our vehicles and homes, or ensuring our friends and family are OK after we're gone, the need of insurance cannot be denied. Thus, we could extend a step to the reassurance the various Insurance policies give us.
It is the need of the time to secure our family's future and build a financially strong community.
Frequently Asked Questions (FAQs)
