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We have been advised to buy insurance more than once in life. Whether for health, life, a brand-new car, or starting a new business. But we often avoid buying insurance, thinking, why do I need one? I have good driving skills, or why buy insurance being a healthy and young person?
On the opposite side, no matter how good you are at driving or how healthy you are, we all need insurance. That is simply because insurance works as a safety net that financially protects you and your family.
What is insurance
The notion of insurance is very simple to comprehend. You pay a monthly or yearly sum to your Insurance Company in Pakistan to insure your vehicle, life, health or property for a certain duration. In return, the company will pay for any damages or harm to the insured object or person.
For instance, somehow, you meet with a car accident and get hospitalized. Your health insurance will pay your medical bills, and your car insurance will pay for the car damages.
The most important types of insurance are:
- Life insurance: life insurance will protect your family if you meet with an untimely death. The insurance will pay your family with a lump sum which will help the grieving family battling financial struggles.
- Health insurance: health insurance is a way to make sure that you and your family get the best medical treatment in case something happens, without worrying about the bills. Your health insurance policy will cover the cost of medical treatment in exchange for your regular premium. This includes post and pre-hospitalization, daycare, and hospitalization, and your bill will be directly settled between the hospital and the company.
- Liability insurance: this insurance is beneficial for insuring businesses, cars, properties, etc. The company will compensate for any damage to the insured property or object on buying liability insurance such as business, home, or car insurance.
- Education insurance: this insurance can also work as an investment scheme. You pay a sum of money until your child gets to 18, and you can use that money for the child’s educational purposes and not any other.
Key features of insurance
Insurance policies can be defined as support pillars you require at the time of need. A few salient features of insurance are mentioned below:
- Easy to purchase: one of the main features of an insurance policy is that it is extremely easy to purchase. Due to globalization and the widespread use of the internet, one can easily purchase insurance policies according to their need by sitting in their comfort zones. Many insurance companies offer online and offline purchasing so that people can choose according to their comfort.
- A partner in a financial crisis: the key purpose of the insurance company is to help you in a financial crisis when in need. Be it vehicle, health or life, or any other insurance.
- Several options and offers: Nowadays, companies offer a number of options to choose from. There is great flexibility whether you want to choose to stick to one or many options. The choice is completely yours. On the other side, there are many occasions when a company provides various offers to the insurer, such as a reduction in the renewal amount.
- Insurance for every valuable thing: there are insurance options for almost all luxury and precious things. You can get cover for things like mobile, jeweler, home, and vehicle.
Benefits and importance of insurance
Insurance is a tool that benefits not only businesses and individuals but also the economy and society in many ways. Some of the major benefits of insurance:
- Insurance offers protection against many calamities that can put you and your family in financial crisis in the blink of an eye. By covering the uncertainties of your life, insurance provides a sense of calmness and security.
- Insurance promotes risk control activity.
- Insurance funds are invested in many projects like roads, power, water supply, etc., contributing to the family’s overall economic growth.
- The risk of insurance is spread across various organizations and individuals instead of just on one.
- Many insurance products come with investment cum protection benefits. Such products teach regular saving habits among individuals.
- Furthermore, the insured gets tax benefits depending on the insurance type.
- To sum up, it can be inferred that having health insurance pakistan can prevent burning a hole in your pocket in desperate times and the basic purpose of all insurance types are to assist and provide damage control to the insured.
