Here's Why You Must Have Insurance

Posted in Health Insurance Blogs By Bajaj Markets-Jan 20,2023
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Ever been advised to purchase insurance for your health, car, business, or life? Do you shy away from buying it thinking that you are too young or healthy to get one? Or do you drop the idea of getting car insurance thinking that you have good driving skills? 

Well, irrespective of how young or healthy you are, or how good of a driver you are, everyone needs insurance. The simple reason behind this is that insurance is a safety net that provides you with financial security when you or your family suffers any kind of loss. 

Insurance – Meaning

Before diving into the various dimensions of the importance of insurance you must know about, let’s understand what insurance is. A tool which helps you mitigate financial hardships or losses is called insurance. In simple terms, it is a legal agreement between an insurance provider and the insured. The insurer compensates for certain losses that the insured might go through. They pool the risks of their clients and make the payments affordable for their customers (here, insured). Unexpected events like illness, theft, death, or property damages are covered. Depending on the plan you opt for, you may get financial security for a particular span of time or throughout your life. It protects you against financial loss – of a car, house, or even life.

In return for these advantages/services, all you are required to do is pay a very nominal premium amount which is charged on a periodic basis, varying according to your insurance type and policies. The amount of premium you need to pay varies according to the probability that you will undergo a certain type of loss which is claimable. Besides, the health, age, family history, or lifestyle of the insured are also taken into consideration. The premium amounts for home, health, dental, and auto insurance plans depend on the deductible. This amount is that of your claim which you agree on paying before the insurance provider pays the remaining. It is obvious that if you choose a greater deductible, it will lower your premium amount since you agree on paying a higher portion of your loss.

Insurance is based on certain kinds of principles like human solidarity, indemnity, service provision, and economic/finance activity. 

Need for Insurance

Insurance is a must have for better financial security. Below mentioned are few of the reasons why insurance can prove to be the best financial decision you will ever make:

  • Peace of Mind

Insurance providers design personalised insurance plans at a very nominal premium amount. This amount guarantees that the insurer will pay compensation for any kind of unforeseen event you may go through. All you need to do is, pay a low premium amount and get yourself insured against the highly probable unfortunate event that you may go through. This can help you attain a peace of mind for the rest of the year or even a lifetime, depending on your plan.

  • Ensures Financial Stability

Irrespective of the amount you may have saved throughout your life, any unexpected loss or accident can cost you a fortune, thereby jeopardising your financial future. Having an insurance policy can save you from such financial stress by covering all the expenses that are associated with that loss.

  • Mitigates Stress During Hardships

An unforeseen event can turn your life upside down in every way – financially, emotionally, and physically. Having insurance policies can aid you in a way that you will not have to worry about the financial coverage since the insurer will take care of that. You can completely focus on the path of recovery. Suppose your family member undergoes a heart attack unexpectedly, requiring immediate hospitalisation, the significantly high medical/hospitalisation charges will be taken care of by your insurer. Hence, having health insurance shall relieve you from the stress of arranging money immediately for their treatment.

Types of Insurance

The various types of insurance are as follows:

  • Life Insurance

This insurance offers tax-free compensation to the insured’s loved ones post their death, as mentioned in the policy. There are two types of life insurance: Term Life Insurance and Permanent Life Insurance.

  • Health Insurance

This type of insurance aids you to pay for the services which are not covered by the provincial health care policy. Types of health include insurance supplementary, disability, critical illness, travel medical, and long-term care insurance.

  • Property and Casualty Insurance

This type of insurance provides coverage against any kind of damage to your personal possessions like house, car, or business. Some of them are: Home or Property, Tenant or Renter’s, Auto, liability, business insurance, and many more.


Risk is something that may happen in the near or distant future. Such risks may result in the consequences which might be a cause of concern. Identifying these risks, assessing their importance, and adapting them to your resources is the best way towards a smarter financial future. Insurance is one of the best suited responses to cover you against the adverse consequences of such risks, thereby acting as a safeguard against financial losses/damages that might come your way. 

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