While the importance of insurance has certainly increased over the years, people still do not consider it as one of the top priority products that they should have in their portfolio when they are working on their personal finances.
The core of any insurance plan is to offer the policyholders with protection. Providing protection and mitigating their risk is the simple motive of insurance. Making that small investment in any insurance plan will enable them to be tension-free and offer security in advance.
Health insurance is to provide the policyholder with a financial cover in times of medical needs. With the new disease around us, people are more looking at health insurance to battle against the steep rise in the medical cost. With diseases like COVID-19 not being age-specific, experts say having a health insurance policy should be a priority. While planning their finances, individuals should consider health insurance as one of the first necessities.
A life insurance plan provides financial protection to the policyholder’s family, in case of the sudden death of the policyholder. Everyone knows why life insurance is important, but many of us choose to ignore the reality of what would happen if we were to die suddenly without proper protection. Young people think life insurance is something you need to think about when you get old. But that is a big myth! Life insurance is a bit of extra money that is invested and it accrues cash value.
Life and Health Insurance: Why?
In times like the current one, when even getting out of one’s home and meeting people are considered risky, there should be no excuse for not having adequate life and health cover if one can afford it. Life and health insurance is not a waste of money. It offers the dual benefits of savings and protection. It is leverage one needs to gain financial freedom and has to be part of a wealth-building plan.