Why we need insurance

Why We Need Insurance?

We need insurance to protect ourselves and our families from unexpected financial losses due to accidents, illness, or death. It acts as a safety net that transfers the risk of a major expense to the insurance company. This provides peace of mind and ensures that your savings remain intact during emergencies. Having insurance is a crucial part of financial planning, helping you maintain stability during challenging and unpredictable times.

Why not I take a Top UP Policy instead of New India’s Mediclaim Policy?

A top up policy is an additional coverage for people already having an individual health insurance plan or employer health insurance policy. It is useful in case of a single illness which consumes the entire sum insured in the base policy. The top up policy triggers only after the sum insured in the base policy is exhausted and the deductible under the top up is crossed due to hospitalization. Having a top up policy without a base health insurance policy is like having a bike without an engine. A top up policy has a deductible amount which would be almost 20% of the top up policy sum insured. For example let us take a base policy with Rs.2 Lacs and Top up policy with Rs.5 Lacs, in case of hospitalization first the base policy sum insured will be utilised and then the top up policy kicks in.

Why buy insurance online?

There are many different types of insurance and it can be difficult to decide which one is the best for you. However, by purchasing insurance online, you are able to compare different plans and find the one that suits your needs.

Here are some of the benefits of buying insurance online :

You can compare plans and find the one that suits your needs

You can save money on your current plan by switching providers

Why insurance is necessary?

Insurance is a financial product that can be used to hedge against the risk of loss. It is a form of risk management primarily used to hedge against the risk of financial loss.

In order to understand why insurance is necessary, it is important to know what different types of insurance are available and how they work.

There are two main types of insurance: life and non-life. Non-life includes property and casualty, which covers mainly cars, homes, and other possessions; while life includes life, disability, critical illness, long-term care, and annuities.

The purpose of insurance is to provide protection against financial loss in the event that something unfortunate happens.

why is the insurance known as a tertiary industry?

Insurance is classified as a tertiary industry because it provides essential financial services rather than producing raw materials or finished goods. It falls under the service sector, facilitating the smooth operation of primary and secondary industries by mitigating risks. By providing security against potential losses, it supports trade and commerce across the economy. This service-oriented nature makes it a vital component of the modern financial infrastructure and overall economic growth.