Insurance is an important part of any financial plan. In particular, health, medical and life insurance are essential components of a secure future. In India, 31 million corporate employees are required to have group medical insurance as per a 2020 notification from the Insurance Regulatory and Development Authority of India (IRDA).

It's important to recognise that getting insured should be a priority for everyone. Not only will having insurance help to protect individuals from costly medical bills and other unexpected costs, but it can also provide peace of mind in knowing that you have the coverage you need in case a serious illness or injury occurs.

 

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Why Insurance Is Important

Many people overlook the need for insurance until they are faced with a catastrophic event. Here are some reasons why insurance is important:

1. In case Of Emergencies, Help Is Always Provided

Insurance can provide assistance in case of emergencies, such as medical coverage for unexpected illnesses or accidents, or property insurance for natural disasters or theft. This can help individuals and their families get the support they need when they need it most.

 

2. There Is Always A Fail-safe Option When You Require Money

Insurance can provide a fail-safe option when money is needed, such as through life insurance, which can provide financial support to loved ones in the event of the policyholder's death, or medical insurance, which can cover the cost of necessary medical treatment.

 

3. Your Loved Ones Will Always Be Taken Care Of

Insurance can help ensure that loved ones are taken care of in the event of the policyholder's death or incapacitation. This can provide peace of mind and security for individuals who are the sole providers for their families.

 

Related story: Ten Questions To Ask Before Buying Health Insurance

 

4. Future-proofing Your Finances (Building Wealth)

Insurance can be a useful tool for future-proofing finances and building wealth. By investing in insurance policies with savings components, individuals can create a financial safety net for the future while also accumulating wealth over time.

 

5. Reduce Stress During Unstable Times

Insurance can help reduce stress during unstable times, such as during a global pandemic or economic downturn. By providing financial protection and support, insurance can help individuals and their families navigate uncertain times with greater confidence and peace of mind.

 

Related story: Signs of Chronic Stress And How To Tackle It

 

6. Save On Tax

Insurance can provide tax benefits for individuals and families. In some cases, insurance premiums may be tax-deductible, allowing policyholders to save on their tax bills while also protecting themselves and their loved ones.

 

7. Taking Care Of The Health And Well-being Of Your Family And Yourself

Insurance can help individuals and their families take care of their health and well-being. Health insurance, for example, can cover the cost of necessary medical treatment, allowing individuals to focus on their health rather than financial concerns.

 

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Things To Consider When Buying A Life Insurance In 2023

Life insurance is a financial product that helps protect your loved ones in the event of your untimely death. It provides a death benefit to your beneficiaries, which can be used to cover funeral expenses, outstanding debts, and other financial needs. When buying a life insurance policy, it's important to consider the following points:

1. Your Objective

It's important to determine the purpose of your life insurance policy. Are you looking to protect your family in the event of your death, or are you looking for a way to save for retirement? Understanding your objective will help you choose the right type of life insurance policy.

 

2. Choosing The Right Plan

There are several types of life insurance plans available, including term plans, savings plans, unit-linked insurance plans, and child plans. To ensure that you find the plan that best meets your needs, it is important to thoroughly research your options.

 

3. Calculating The Cover

When purchasing a term insurance policy, it's important to determine the appropriate amount of coverage. This will depend on your financial needs and obligations, as well as the needs of your beneficiaries. Consider factors such as outstanding debts, funeral expenses, and future financial goals when calculating the amount of coverage you need.

 

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4. Deciding On The Term

Term insurance policies typically have a specific term or length of coverage. When choosing a term, consider the age of your beneficiaries and the length of time they will need financial support. For example, if you have young children, you may want to choose a longer term to ensure they are financially protected until they reach adulthood.

 

5. Adding Riders

Riders are additional coverage options that can be added to your life insurance policy. Common riders include accidental death coverage, long-term care coverage, and critical illness coverage. Adding a rider can provide additional protection for you and your loved ones, but it will also increase the cost of your premiums.

 

6. Checking The Claim Settlement Ratio Of Insurers

The claim settlement ratio is a measure of how many claims an insurance company has paid out compared to the total number of claims received. A high claim settlement ratio is a good indication that an insurance company is reliable and efficient at paying out claims. Be sure to research the claim settlement ratio of any insurance company you are considering before making a purchase.

 

Related story: Six Money Questions To Ask Your Partner

 

7. Providing Correct Disclosure And Information

It's important to be honest and accurate when providing information to your insurance company. Failing to disclose relevant information or providing false information can result in the denial of a claim. Be sure to provide accurate and complete information to your insurance company to ensure that your policy is effective.

 

Related story: Way To Cope With The Mental And Physical Impact Of Financial Anxiety

 

In summary, getting insurance in 2023 should be a priority for everyone. Health, medical and life insurance are essential in providing financial security and peace of mind from unforeseen circumstances. It is important to understand what type of coverage you need and shop around for the best price. Start researching now to make sure you have the necessary protection in place as this year progresses further.

 

Need all your wellness solutions in one place? A whole new world awaits just a click away.