An insurance policy is a surety or protection against any form of financial loss. It could be in the form of personal injury or vehicular damage. Which is why many people opt for an insurance policy as a method of transferring the risk of financial loss to a company by paying a small amount every year.
Insurance policies come in several form, you can have practically everything insured these days, but we would like to focus on the two main aspects of insurance which are health insurance and motor insurance.
Health Insurance is an agreement you sign with an insurance company that claims that in the case of any medical emergency or medical expenses that could come up from time to time, the insurance company will bear the costs. These could include medical expenses based on illnesses, accidents or any other routine but necessary medical procedures that might be covered under your insurance policy.
A motor or vehicle policy cover the cost of damage to your motor vehicle. These could include accident repair costs for your vehicle as well as any vehicle to which you might have caused some damage. There are several companies that provide you with the option to buy motor vehicle insurance as the government has made it mandatory for all vehicles on the road to have a valid and legal motor insurance policy to safeguard the interest of the people on the roads.
There are several benefits of purchasing an insurance policy for yourself such as
- You have the financial security of a large organisation in case of an emergency
- You can have full coverage of your medical expenses which is great as medical expenses can really pile up
- Some insurance policies also provide individuals with an exemption from tax under section 80CCC and 80D
- Insurance also provides your family with financial support if (you) the bread winner was hurt
- You can get a large cover for a small payment every month
- You can even get a loan from your insurance company with the policy as collateral