We have all been invited to buy insurance more than once - for life, health and even to buy a new car or create a new business.
But, often we are afraid of buying insurance, do you think you know why do I need to buy life or health insurance being a young and healthy person? Or, why do I need insurance for my car, I have good driving skills?
Unlike these thoughts, whatever the good health and how we work financially or how much we are a driver, we all need insurance. This is simply because the insurance acts as a safety net that protects you financially and your family when chips are down.
In this blog, we will talk about all about insurance, that is, what it means, what are the most essential types of insurance and why it is important.
What is insurance?
The concept of insurance is very simple to understand. You pay monthly or annual fees for the insurance company to ensure your life, your health, your vehicle, your property, etc. for a certain period. In return, the insurer pays the financial damage in case of prejudice to the person or the object insured.
You transfer the risk of financial loss you could feel because of the uncertainties of life to an insurance company for a small supplement. For example, if you encounter a car accident and if you need to be hospitalized. Your health insurance policy will cover medical costs of hospitalization. And your car insurance will pay damage to your car. Meanwhile, if you die during the accident, your family will receive a lump sum for your term insurance.
Arts to domestic animals, there is available insurance for a number of things, and there should be insurance according to their needs and priorities. But there are 3 types of the most essential insurance.
The 3 largest insurances are:
Life insurance:
Life insurance financially protects your family in case you die of early death. Here's how it works. You pay a regular premium to the insurance company for a specific number of years. In return, the insurance company pays a sum insured to your family if you die during the policy mandate.
There are different types of life insurance policies and in some of them, you get a lump sum if you live in the land tenure. For example, temporal insurance provides higher coverage for lower premium than other life insurance policies. But no money is paid to the policyholder if he survives duly. In the meantime, for policies such as endowment or money, the policyholder receives a lump sum after the end of the policy mandate. For such policies, the amounts of the premium are much higher against coverage, compared to term insurance.
Health insurance:
Health insurance is a way to make sure you and your family can get the best medical care without worrying about cost.
In a health insurance policy, the cost of medical treatment of the insured persons is borne by the insurance company. In exchange for a regular premium paid by you, the insurance company pays all the expenses related to a disease for which the insured person needs treatment. This includes hospitalization, daycare, post and pre-hospitalization, etc. And with the installation without cash, your invoice is directly set between the company and the hospital.
Liability Insurance:
Such insurance is used to ensure properties, cars, businesses, etc. on the purchase of liability insurance - car insurance, home insurance, a commercial insurance, in case of damage of insured objects or property during the police tenure, the insurance company compensates the owner financially policyholder.
Now that you know the type of insurance important, let's talk about why do you need insurance?
Reasons that everyone should get insurance
As we said at the beginning, most people think that insurance is an unnecessary expense. The reason is that we feel confident of our future and our ability to combat unpublished circumstances. But there is a huge difference between our capacities and the reality perceived. For instan
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