Insurance is an agreement in which a person makes regular payments to a company and the company promises to pay money if the person is injured or dies, or to pay money equal to the value of something such as house or car if it is damaged, lost or stolen. Insurance can also refer to the amount of money a person regularly pays to the insurance company or receives from an insurance company as a part of an insurance agreement. It is evolved as a process of safeguarding the interest of people against loss and uncertainty and the correct mix of insurance policies will not only safeguard the assets but will help in designing best financial plans.
By now we can see how important the word insurance is in our lives. The word has such a significance in our lives from which some people are quite unaware. In few areas of our country people still takes it for granted with a perspective that having an insurance will show a lack of faith in God. Seriously? Well, apart from all this there are few very crucial insurance policies that every Indian must have because risks are unlimited and can cause anywhere and at any time.
Life Insurance
For example, if there is an untimely death of somebody or someone is suffering from a critical illness, what are the alternatives? While having an insurance is definitely the one. Because this will cover the people who are financially dependent on that person like spouse, kids or parents who may face hardships due to the lack of correct insurance policy.
Health Insurance
One cannot afford to leave this out as well. Because in today’s scenario it is almost difficult to predict the health of someone. With the cost of health care spiraling every day, missing this policy will definitely make a difference. This policy plays a vital role in unpredictable situations, for example, accidents, emergency operations, smokers etc.
Property Insurance
Another very important insurance policy could be a home insurance. A home is an utmost security for everyone yet man-made or natural catastrophes are always meant to be there. To cover such a risk one should get indulged into a comprehensive insurance policy which will forfend the risk of losing it.
Auto Insurance
This is an ultimate option when the vehicle is badly damaged. Consider a situation when the person is out of money and he/she cannot afford the repair cost of the car or the scooty? Yes, it is never desirable and obviously never comfortable.
Insurance companies have standard policies with a considerable amount of premium which is normally affordable. So whether it is about the assets or life, insurance is always a friend worth trusting. It may be considered as a social device that eliminates the risk of losing life or property. It encourages savings, promotes growth and provides support and security in the hardships of life. It is definitely a risk management object.
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