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We’ve all been told to buy an insurance plan. Be it health, life, vehicle, or business, investing in one is considered one of the best adult life decisions you can make.
Depending on a fixed premium you choose to pay, the insurance plan promises to come to your financial aid during emergencies such as a health scare, a car accident, a business going under. Yes, some might say a credit card does come in handy during these times but you forget that you’ll need to repay the credit and along with interest if you miss the due date. Plus, an insurance is also a better alternative to a personal loan.
Investing in insurance is one of the best decisions you can take. Still unconvinced? Then, let’s take a look at five amazing ways they can protect you from financial hiccups.
The core tenet of life insurance is to look after your loved ones if something were to happen to you. Say you buy a term insurance plan and choose Rs 1 crore as the sum assured. Now, if something happened to you within the policy period, your loved ones would receive Rs 1 crore so that they can continue their lives without having to comprise on their financial well-being.
A health emergency never comes calling and health insurance is one of your best friends during such periods. They help you tide over the testing period by taking care of all the medical bills; that’s a lot of money. From bed charges to treatment costs to doctors’ fees, a health plan takes care of everything. Another example is car insurance that’ll cover all the expenses of your car’s repair after an accident. You won’t have to spend from your wallet.
Major life goals such as buying a home, foreign education or marriage don’t come cheap. This is where unit-linked insurance plans (ULIPs) become useful. Half of the premium you pay goes into insuring your life while the other half is invested to make more money for you - the best of both worlds.
Some insurance policies are designed to protect your business against unforeseen circumstances and save your money. Theft, natural disasters, loss of income, employee illness - you’re protected and you won’t have to lose a lot of money, which you would if your business was uninsured.
A major allure to buying insurance is the tax benefits they have to offer. For instance, you can save money on life insurance under Section 80C of the Income Tax Act - the saved money will be credited right into your savings account. Check with your insurance provider on the tax benefit of the plan you wish to invest in. Over the years, you’ll stand a chance to save a lot of money.
The money you invest in an insurance plan will never go in vain, just make sure to understand all the finer details of the plans before you put your money into it.
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