Insurance literally means ‘to make sure of’. In our daily lives, nothing is certain. We have no guarantee of any event which may occur to us. These events can be joyous or can lead to a massive loss of property, belongings or even our loved ones. In such a case, everyone needs a security for what they have. For this purpose, we have Insurance companies giving us insurance policies with perfect plans of what as to recover if someone encounters a loss. Some may find them wastage of money as there are some rules and regulations to be followed in these policies but on the whole when you get lump sum money at any event then one need to appreciate the benefits of this practice. Here are some of the points, indicating the benefit of Insurance.
What Is Insurance And Its Benefits
10. Compensation for the loss
As any one of us may encounter any unforeseen event which may be a robbery, accident or even death then life insurance or insurance of any of the belonging which has been lost in the event can save us from getting deprived from the happiness previously we had. These insurances according to the plan, provides us from the compensation of the loss no matter how big the loss is.
9. Helping in all the events
As the children grow, there is growing needs, which is not possible to fulfill from a simple salary or personal savings. Rather insurance provides you a platform for investing the money to be saved for a use in the later ages. For example, we keep on investing money in the insurance companies and when we need a large amount of money for the education of our children or marriage ceremony of any of the child then there comes the rescuer, Insurance policy.
8. Health Benefits
Medical treatment nowadays has been one of the big difficulties people are facing due to very expensive treatments of qualified hospitals. If there is any unfortunate event in terms of health then there is a much worrisome situation for the diseased. In that place, insurance policies provide us with the wholesome amounts in terms of dire need. This is particularly important in European countries where there are no free medical cares from the government hospitals rather people utilize this facility free of cost just by the way of insurance which is sort of compulsory for every citizen.
7. Participation in Economic Growth
People usually see insurance as in savings for their own future use but it has a different aspect as well. Having an insurance policy lets you save some money by depositing an amount of money every year in the company. This money is actually the investment in the business of that company which can use this money for the development purpose and provides you with the profit. And this money is used to award one of the customers with a reward in terms of bonus every next month or quarterly. So this is a give and take activity.
6. Long term benefits
Insurance policies provide us with long term benefits by providing the packages with longer times of the year. Like for example if we are dealing with the insurance of life of a person then the packages contain a period of tens of years and same is the case with the other insurance policies. So as compared to the short term loans by banks or any other organizations, which provide us a very short term benefit, insurance companies assure us for a benefit in the long run.
5. Best Retirement Plan
Insurance policies are the best plan for a continuous supply of money after retirement. When a person is in the phase of earnings and in their younger ages then at that time personal saving treatment seems to is little overburdening. Whereas if one invests in an insurance company then at the age of 60 after retirement, when one has no more capacity to go outside and look for a new job or a career then these insurance companies provide with a continuous source of income after the viable age. This seems to be a lot helpful then regular small investments which definitely have a greater risk than any safe insurance policy.
4. Prevention of major illnesses
Now this seems to be a little out of track but has a very vital point in our lives. As we all know that proper and qualifies standard medical treatment is not affordable to any of the person who has a salary-pay life. And definitely such people in the absence of any insurance plan never head towards the hospital but if they have a health insurance then people can go for regular medical check-ups which can protect people from any serious illnesses because regular medical treatment can nip the evil in the bud.
3. Tax Benefits
Tax on large amounts of money is another issue people face and try not to invest them or store them. But insurance plans are really beneficial in the aspect that they provide us with very easy tax policies both at the time of investment and at the time of exit. By exit we mean if at any point of life due to any circumstances, a person wants to withdraw the money they have been investing then in that case, despite of large amount of money going to the government as taxes and the owner of money is left with only a small amount, insurance policies gives easy hand on tax cuttings.
2. Safe Residence
A home is built after years and years of hard work and savings and now in this age, there are geographical changes going on a massive scale. In this aspect, we see many natural disasters in different regions of the world. So if there is any such unfortunate event, it may not leave a scrap of any of the things you belonged to. So if one has an insurance regarding housings so we can go for a new house after the calamity is over. On the other hand, if there is any damage to the house, insurance policies provide you the repair facilities for your house.
1. No Income Tax
We all know that Income tax is present on every inch of the money we own. But we have a place where income tax has no power. This is where the insurance plans come into play. There is no income tax on the death beneficiaries. Due to this the relatives of the dead get a full amount of money which can help them in case of the death of the bread earner. Similarly policy loans have no income tax and help to get the short term incidental benefits along with the long term plans.