Importance of life insurance | Fusion - WeRIndia

Importance of life insurance

Importance of life insurance

Life is unpredictable, and nobody knows when death will approach. Insurance is useful to meet the needs in the event of unforeseen condition. It aims to provide protection and reduce risk to the insured. Different types of insurance policies like life insurance, health insurance, and vehicle insurance are available.

Life insurance rescues the family of a deceased person to meet financial needs. But, many people do not focus on life insurance policies as the sum assured will be provided to their nominees in the event of their death.

There are many reasons, which is why insurance is important:

  • Insurance promotes savings. Many life insurance companies offer life cover, along with wealth creation for future goals. Some of them include money back plans, endowment plans, and unit-linked investment plans (ULIPs).
  • Insurance is one of the most effective risk management tools. It helps manage risk with the sum assured amount.
  • Insurance provides financial security to the family of a deceased individual. Especially if the deceased individual is the sole breadwinner, in such cases, the family will face financial troubles if the person does not have insurance. On the other hand, if the person has life insurance, then the family will get insurance compensation from the insurance company. This will help the family stabilize and manage their finances for some time.
  • The sudden demise of breadwinners affects the family severely. Children may have to drop out of their education due to financial difficulties. Insurance helps avoid such bad consequences and achieve the financial goals of the family even when the risk happens.

Many insurance companies in India offer life insurance policies. Life Insurance Corporation of India (LIC) is one among them. It is the most reputed and biggest life insurance company in the country. It offers many flexible and diverse plans to meet the needs of the customers. It is the most preferred life insurance company in India as it has a huge customer base.

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