Why are people buying Insurance?

Top 9 Important Reasons to Get Insurance

Insurance is an important part of our life. It has many benefits that we cannot imagine. However, it is very essential that we should know why people buy insurance.

1.To Save your Money

Many people buy insurance because they want to save money. It is the most common reason. People often use insurance when their home is damaged due to natural calamities like fire, flood, storm etc. Also, they buy insurance when they are about to travel on a long distance by train or plane, so that they don’t have to lose their money because of theft or accidents.

2. To Protect your Valuables

There are a number of reasons why people buy insurance. Sometimes, people buy insurance for their family members. They want to protect their valuable assets like jewellery, car, laptop, mobile, TV etc. They also want to make sure that they don’t lose their valuables when something goes wrong.

3. To Save you from Financial Loss

If you have ever been caught in a situation where you need money urgently then you must have bought an insurance policy. It will help you to save yourself from financial loss. So, people buy insurance when they need to pay for the hospital bill or repair the house in a short notice. They also buy insurance when they need to pay for their education fees.

4.To Protect your Home

Sometimes, people buy a home insurance policy just because they want to protect their home. If your home is facing a major natural calamity then the policy will cover all the damages. It will also help you to protect your belongings that are inside the home.

5.Protects your Family

People buy insurance for their family members. There are some people who buy life insurance for their children. Their plan is to provide for their family in a better way if they are no longer around to take care of the family. They also buy insurance for their spouse if they are not married yet.

6.To Reduce your Taxes

Many people buy insurance policies to avoid paying a lot of tax. They buy the policy from a company that has low premium rates and the payment of taxes is also less.

7. To Be Covered in a Crisis

Some people buy insurance in order to be covered in a crisis. For example, they may want to have an insurance in case of a fire, natural calamities, burglary etc.

8. To Save Your Assets

If you want to invest your money wisely then you must invest in a life insurance. Life insurance will help you to build a corpus that will serve as a savings vehicle for you. It will also help you to get tax free income.

9. In the event of Death

Insurance is the best way to protect your family in the event of death. It will help you to maintain the property and will protect you from financial loss.

Also read this How To Pay Off Your Unsecured Personal Loan Faster

Conclusion:

There are many more reasons to buy insurance. If you are a parent, you need to protect your child and your family from the financial hazards. You should also use insurance if your vehicle is stolen or destroyed.