Are you uninsured? That could be a problem. You see, insurance is no longer a luxury but a necessity. The need of insurance today is at its peak. But there are many types of insurance products to protect you and your loved ones. You may ask, ‘Why is insurance important?’ Here are 10 reasons.

Top 10 Reasons for Buying Insurance

  • Financial security

The biggest reason for buying insurance is security. The purpose of insurance is to protect you against unforeseen events. Suppose you were to die. The life insurance payout would support your family financially.

  • Saving for the future

An insurance plan is not a savings tool. But one of the benefits of insurance is this: You can build a fund for the future. For example, Mohan got a unit-linked insurance plan (ULIPs) from Bajaj Finserv. ULIPs combine life insurance with investment. Mohan knows that modest returns are likely. But having a policy forces him to save.

  • Saving on income tax

You can save a lot on tax with a balanced insurance portfolio. Under Section 80C of the Income Tax Act, life insurance premiums are tax-deductible. Health insurance premiums also come in for exemptions under Section 80D.

  • Beat inflation

Constant inflation is a pressure on your budget. A case in point is the rising cost of healthcare. A single hospitalisation may wipe out all your savings. That is where health insurance becomes helpful. You gain access to healthcare worth many times the annual premium amount.

  • Better access to services

Why is insurance important? A good health insurance plan gives you access to all kinds of medical services. You may seek treatment at well-known hospitals in the insurer’s network. Similarly, motor insurance lets you access repair services at some of the best garages.

  • Property protection

When you buy a house or a car, you want to keep it safe. An insurance plan protects your property against theft and damage. Some specialised plans cover damage or loss due to natural calamities as well.

  • Financial independence

Pension plans, for example, help you to stay independent even in your twilight years. Besides, smart insurance planning keeps your costs in check. It also fuels savings for the future.

  • Peace of mind

Among the advantages of insurance is that it brings you peace of mind. For example, travel insurance lets you enjoy your trip to the fullest. You are ready to handle life’s adversities when you have an insurance plan in place.

  • Added income

Some types of insurance pay you sums of money at regular intervals. Money-back plans are an example of such insurance policies. This may help if you suddenly get laid off or lose your income due to a disability.

  • Staying prepared

Why do you need insurance? An insurance plan prepares you for the worst. That is why securing your life, health, and assets is so important. It makes you ready to deal with adversities.

A life insurance plan secures the future of your loved ones after your unexpected demise. A health insurance plan helps you get the best possible treatment. A home insurance plan protects your beloved house from any unpredicted dangers. Thus, insurance adds a much-needed cushion to your life. Do you need another reason to buy insurance?