Sunday, 12 December 2010

Why do we take insurance policies?

Most of us may think that insurance is for those who have married and have a family. But let us check why do we take insurance and what are the benefits or insurance policies. Now the insurance companies are mushrooming with so many insurance products and try to attract more customers by putting old wines in new fancy bottles. At this scenario we may think that these policies are only for making money for insurance companies. But there are so many advantages for insurance policies. Let us discuss some of them.

The insurance policies can be classified into life insurance and other insurance policies. The life insurance policies secure our family or dependents when the policy holder’s death or disability occurs due to any reason. Other insurance policies protect the financial loss due to any special circumstances such as accident, theft, illness, natural calamities etc. etc.

The main benefit of life insurance policies is when the death or disability of the policy holder occurs they will provide an amount as per the terms of life insurance to the dependents of the policy holder and it will be a relief for them.

Through insurance policy one can secure the future of his/her children by providing financial help for higher education or for marriage etc.

The person can avail tax benefit according to the law of the land from the insurance policy and from the premium amount he/she is paying.

You can take an immediate loan from insurance companies with the help of policy you are holding as per the terms of the policy you have joined.

When you get back the maturity value of insurance policy you can satisfy any financial needs such as buying property, higher education of children, paying off any existing loan etc.

Some insurance policies give you better return at the time of maturity and you can use this type of policies as an investment instrument.

Some policies allow you to withdraw a part of money before the maturity and such money can use for any financial needs.

Accident insurance compensates you for any damage happens through accidents and can get a relief at the time of necessary.

Auto insurance helps you to compensate the financial loss due to accidents and compensate the third party claim also.

Insurance for theft, fire and natural calamities can help you to get compensation from any loss occurred due to these unforeseen events.

Health insurance helps you to get timely financial protection for the treatment of any illness which may be happened for yourself and your family.

Travel insurance helps you to meet any unforeseen loss or expenses at the time of your journey.

Even if the insurance companies and insurance products are mushrooming, it will give you much care and protection. Only thing is that we should select them wisely and should go through the terms and conditions carefully.

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