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).