Insurance means protection

1.Why buy Insurance? 

Life is full of uncertainties. We face various risks in our day to day life including risks to our life, health, property and so on. Insurance is responsibility, security, peace of mind and the simplest way of telling yourself that you care for your loved ones.

2.What is insurance? 

Insurance is a financial tool specially designed to reduce the financial impact of unforeseen events and create financial security. Insurance works on the law of large numbers where contributions by many in the form of premium paid will take care of the losses of a few. By paying a small premium for covering a certain type of loss, you will be protected for a certain sum of money that you will receive if you face that loss.

3.What insurance to buy? 

Insurance is available for unpredictable events such as death, accident, sickness, loss or damage to motor vehicle, property etc. These are some of the risks against which you should protect yourself from and accordingly buy life insurance, personal accident insurance, health insurance, motor insurance, property insurance etc. While life insurance, critical illness, personal accident and health insurance are offered by life insurance companies; property insurance, motor insurance, householder’s insurance, health and personal accident insurance are offered by non-life insurance companies (also known as general insurance companies).

The insurance policy that you buy must meet your requirements. This means you must first identify what your needs are. You must choose your life insurance policy depending on which life-stage you are in and your aspirations for the future. Insurance need may differ depending on whether you are about to start a family or have growing children with education needs or want to plan for your retirement. You should join a health insurance scheme while young and ensure continuous coverage. While third party motor insurance is statutory, i.e., it is required under the Motor Vehicles Act 1998, it would be wise to buy a comprehensive motor insurance policy that covers damage to vehicle as well. Protecting house and contents against the risks of fire, flood and earthquake will secure your hardearned savings to meet your other financial needs instead of using them for rebuilding.