The Reason for Having Insurance as an Important Part of your Overall Financial Plan
- Life insurance: Life insurance is payable on the demise of the insured and it can provide the insured’s spouse, children, and dependents funds crucial for helping them maintain the standards of living, could help in repaying the debts, and could also help in funding the education costs of children. The amount you need depends on your financial situation. A life insurance plan is also a tax-saving tool. The policy proceeds that you receive from the life insurance company is also exempt from tax.
- Auto insurance: Auto insurance protects you from the damage to the considerable investment in a vehicle from liability for the damage and also injury sustained by you or others driving your car. It could also help in covering the expenses you or others in your the vehicle might incur due to an accident with the uninsured motorist. Auto insurance is crucial for people owning a car. Most of the time, you’re required to have auto insurance before you could register your vehicle.
- Medical insurance: If you’re insured against medical emergencies and critical illness, you’re staying in a valuable position. Your medical insurance policy could reimburse all medical expenses during your hospitalization. You just need to furnish the required documents which prove that you were under medical supervision. In case you require a cashless policy, the insurer would directly pay the medical bills to the hospitals.