Why Having Insurance Is Crucial?

At some point, all of us wish to attain financial independence, and when it comes to doing so, we prefer to assume that savings are adequate to be financially secure. But if you look at life from a realistic point of view, you can realise that investments alone are not enough to achieve financial freedom; it is equally necessary to insure your properties with general insurance policies.

However, some individuals believe that they do not require general insurance policies because they can save enough money to replace their assets if anything happens to them. But, to pay for your medical bills or a car that gets damaged beyond repair, consider a situation when you must wipe off everything you have saved all your life.

What is General Insurance?

General insurance policy is a category of non-life insurance plans that offer motor vehicles, residences, health, and travel insurance coverage. These policies must get renewed under the tenure laid down in their respective policy papers. They have a specific insured amount reimbursed according to the loss arising from a particular financial case. Typically, it is categorised as any form of insurance that does not get covered by life insurance.

It is necessary to buy insurance because it guarantees that you are financially healthy to face life problems. That is why insurance is an essential component of financial planning. It provides health, travel, motor vehicle, and home insurance plans. The convenient aspect is that you buy general insurance online these days.

Reasons to have general insurance:

  • Your financial status can be dented in a moment by an unforeseen occurrence, no matter how much you earn or how much you have saved. So, protecting yourself, your families, and your properties with insurance is the safest way to become financially stable. In case of an unexpected occurrence, you may buy or upgrade insurance online and receive reimbursement for financial assistance.
  • You cannot foresee the future and predetermine the events of the future. Any unexpected disaster will leave you strained emotionally, psychologically, and financially. So, suppose you have general insurance plans to take care of the effects of tragedies such as sickness, accident or permanent disability, and death. In that case, you can save yourself and your family from stress and tension. Any financial worry will be taken care of with insurance in place, and you can concentrate on your recovery.
  • It is sometimes obligatory to buy general insurance online. Motor insurance offers an example of this. As per the Motor Vehicle Act of 1988, it is compulsory for every motor vehicle on the road in India to have at least a third-party motor insurance. During claims, motor insurance comes in very handy.
  • Family is the most asset you have, and for financial support, your family also relies on you. Precisely why it is crucial to make sure that you and your family are safe in the face of any emergency.

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