Insurance: Different Types and Need

Insurance is a way of managing risks. In life, everything is uncertain. Today we are living with a good health, good income but no one knows tomorrow what will happen. If you are the sole bread earner of the family, think about what will happen if you aren’t there anymore. Or you have a shop which is running well, but what if it catches fire sometimes in future? All your investment will go down the drain. That’s why insurance is so much beneficial for us. Yes, we do have to pay a premium for the insurance but the advantage it brings is unmatchable. It does manage risks so much that you can sleep in peace.

1.    Life insurance: life insurance is, insurance against the death of a person. Supposing you are the only person that earns in the family, in case of your death, your family will go through tremendous hardships. This, you probably won’t want your family to face. That’s why life insurance gives an opportunity to give your family or the nominee a chance to get some financial hold in case death comes to you. They won’t be left stranded. They will have at least some financial benefits which may enable them to start something new.

2.    Health insurance: not just life insurance, but health insurance provides you the benefits of taking the burden away in case, some fatal disease occur. Since treatment costs a lot, health insurance can help you in easing the process.

3.    Car insurance: accidents can occur at any time. Your beloved car can be broken into pieces in case of serious accidents. Or someone may steal your car. Car insurance provides you the opportunity to recover the loss in a better way. You won’t face hardships because you lost your car as the insurance company will take care of it.