Independence Day Special 2024: Check Its Types & Importance
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The celebration of India’s Independence is a time to ponder on some important things, especially about the financial well-being of Indians. The financial independence of Indian citizens is necessary for the well-being of the country. To be truly independent, every citizen should have financial security, and insurance and investment policies ensure the same. Read on to know more.
Why is Insurance Important?
Insurance is important because the right insurance helps protect policyholders against financial losses and lets them keep their savings intact. Be it life insurance or general insurance, it covers you and your family against unforeseen expenses. They work like a safety net and allow a financial cushion during times when things go wrong.
Hence, it is crucial to choose insurance policies cautiously and with sufficient coverage. Be it motor insurance, a life insurance policy, a health plan, or any other insurance plan, being covered under the right insurance coverage will keep you away from putting a dent in your pocket.
This Independence Day, let's pledge to make ourselves independent from financial worries and secure our lives as well as that of our dear ones to celebrate independence truly.
Different Types of Insurance
In India, Insurance products are separated into two categories including life insurance and general insurance.
1. Life Insurance
So, what is a Life insurance policy? Life insurance is like a contract between the insurance company (insurer) and the policyholder (insured). As per this contract, the insurer agrees to pay an amount mutually agreed upon to the nominee in case of an unfortunate death of the policyholder during the policy term. However, the policyholder is required to pay the premiums to the insurer to honor the contract.
Life insurance products are of several types and many life insurance plans offer investment cum savings together with providing insurance coverage.
2. General Insurance
General insurance policies are also called non-life insurance plans and they include several other categories of insurance like health insurance, vehicle insurance, home, and fire insurance, and travel insurance
How Does Insurance Help in Strengthening Financial Independence?
1. Life Insurance:-
As discussed, life insurance is an important requirement for individuals who want to secure the lives of their near and dear ones. There are many life insurance cum investment policies that can be availed of to secure the lives of policyholders as well as their family members. A return-on-investment plan can help secure the person in old age or after retirement when they have no or limited means of income.
2. Health Insurance:-
Considering the lifestyle of people these days and the various lifestyle-related diseases on the rise, health insurance is one of the crucial requirements of the present time. Moreover, with the rising inflation, it is very important to remain covered under a health insurance policy to ensure the safety of your savings against expenses incurred on health treatments.
3. Motor Insurance:-
Motor Insurance is required to ensure the safety of your vehicle against damages. Third-party motor insurance is a compulsory requirement for driving vehicles in India. However, it is better to stay covered under a comprehensive motor insurance plan to ensure the coverage of your vehicle against accidents, damages, theft, fire damages, damages caused by natural disasters, and man-made damages.
4. Home Insurance:-
Home insurance is another important security that gives your home the long-lasting protection it requires. Whether you stay as a tenant or you own a house, the home insurance will make sure that your belongings and/or your property is secured against fire, theft, and other unforeseen crises.
5. Pet Insurance:-
Pets are a part of most modern families and they treat their pets like family members. So, to ensure the safety and security of your pet against diseases or accidents, you can avail of a pet insurance policy.
Frequently Ask Questions
Insurance and investment policies ensure the security of your savings. In case of an emergency, these policies can suffice your needs to keep your savings intact.
Yes, there are many child insurance policies. A child insurance plan gives a financial boost to parents to provide an excellent future for their kids in terms of education and a good life.
As such, there is no good time to invest. Whenever you feel ready to start investing it is better to take steps and get it done. The sooner you start, the better it is.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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