Both life and property is surrounded by the risk of death or destruction respectively. These risks might lead to financial losses. The insurance company and the individual come to a legal agreement, where the insurance company is obligated to pay the insured individual according to the insurance policy drafted. Here are the advantages of having an insurance:
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Security: Insurance provides security in times of sudden loss of life or property. For example, unfortunately a shop is destroyed due to a sudden fire breakout. If the shopkeeper had insured his shop, he would be fully compensated for the damage that had happened.
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A kind of investment: Insurance is not only a form of protecting yourself from risks, but it is also a form of investment. It develops a habit of saving money by paying a premium. According to the insurance policy, sometimes the insured individual also gets an amount after the maturity of the policy.
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Your nominee will get the money: An insurance protects your family financially, if there comes a time where you won’t be able to provide for your family anymore
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Tax benefits: You can claim tax benefits under the section 80C as per the income tax act
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Medical emergencies: Health insurances cover your hospital bills when you or one of your family members are sick