-Sri Sathya Sai Baba
We often wonder why we need insurance when we are young, healthy, have multiple sources of income, and live the best of our lives. Regardless of how much you earn or how smooth your business is going on, how fit and healthy you are, one of the most important financial decisions in life is to save for an emergency. There are numerous insurance products such as general insurance plans, health insurance, accident insurance, term insurance, retirement plan, life insurance, vehicle insurance, property insurance, etc. The main goal of any insurance policy is to provide protection and relieve you from a substantial financial burden at the time of crisis.
Life insurance is a contract between an insurer and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime.
Health insurance is a contract that requires an insurer to pay some or all of a person's healthcare costs in exchange for a premium.1 More specifically, health insurance typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly.
The tangible assets are susceptible to damages and a need to protect the economic value of the assets is needed. For this purpose, general insurance products are bought as they provide protection against unforeseeable contingencies like damage and loss of the asset.
