Before we plunge into how important insurance is for Indians, one needs to understand that it is undoubtedly universally important. Insurance in itself is a full proof way to secure a person and/or his family’s future. Today it has manifested itself in many types, like medical, property, life and Health insurance.
Insurance is a policy from a large financial institution that offers a person, company, or other entity reimbursement or financial protection against possible future losses or damages. Understanding the concept of these financial policies is fairly easy. Consider a biker. He is always subjected to the risk of head injury but it is not certain that an accident involving head injury would definitely occur. Still, people riding bikes cover their heads with helmets. This helmet in such cases acts by protecting him/her from any possible danger. The price paid is the possible inconvenience or act of wearing the helmet; this is equivalent to paying insurance premiums.
The key reasons why Indians need insurance are as follows:-
Insurance company takes the risks of large but uncertain losses in exchange for small premium. So it gives a sense of security and prepares us and our entire family for a future that cannot be predicted.
Insurance investment plans facilitate maintenance of large size commercial and industrial organizations. They safeguard capital and at the same time prevent the loses of owners of such organizations. Indians have a knack for businesses and such a policy comes in very handy. We all know that Indians have a saving fetish they just can’t seem to overcome. The best way to save is by employing the services of an insurance company. An insurance policy is also a very suitable way to provide for the future. Policies such as Health insurance and travel insurance help you prepare for untimely accidents.
Insurance helps to maintain correct distribution of cost. Every businessman tries to pass on to the consumer all types of costs including accidental costs and losses also. Having an insurance ensures that such losses are correctly estimated in spite of a vast number of affecting factors.
Companies spend large sums of money with a view of gauging the reasons and preventing fire accidents, theft and robbery. They also support several medical programs in order to spread public safety awareness. Insurance is a major activity that safeguards companies against losses of this kind. Without insurance and other such preventive activities, the chances of loss would have much greater in comparison.
Insurance solves several complex social problems e.g. compensation is available to victims of Industrial injuries and road accidents while the financial difficulties arising from old age, disability or death are minimized. Hence, an insurance cover allows many companies and families to continue existing intact even after the losses.
A policy can even insure the life of a newborn via Child Life Insurance Plans.
Insurance policies are both a means of ensuring future and act as good investment opportunities. Along with that, buying insurance online is extremely attractive due to the ease of convenience it offers.
Insurance helps alleviate various types of fear from the mind of people. The insured is secured in the knowledge that the protection of the fund is behind him if some sad event happens. It thus creates confidence and eliminates worries. Such a consequence is difficult to evaluate, but the benefit is very real.
So whether Indians look at insurance policies from a business perspective, as an investment opportunity or as just another way to ensure the future of their child/health/family, they will find them infinitely helpful at every stage of their lives.