Insurance is a financial arrangement that provides protection against unexpected risks and losses. By paying a small premium, you transfer financial risk to an insurance company, which offers coverage during emergencies.

Why Is Insurance Important?

Insurance protects you and your family from financial hardship. It helps you:

  • Manage unexpected expenses

  • Protect income and savings

  • Cover medical emergencies

  • Secure your family’s future

  • Reduce financial stress

Types of Insurance

1. Life Insurance

Provides financial support to your family in case of death. Term insurance is the most affordable option.

2. Health Insurance

Covers medical expenses, hospitalization, and treatment costs.

3. Motor Insurance

Protects your car or bike against accidents, theft, and damage.

4. Home Insurance

Covers damage to your home and belongings due to natural or man-made risks.

5. Travel Insurance

Provides coverage during travel for medical emergencies, delays, or loss of luggage.

Benefits of Insurance

  • Financial security

  • Peace of mind

  • Protection from emergencies

  • Tax benefits (in some policies)

  • Long-term financial planning

How to Choose the Right Insurance Policy

  • Assess your financial needs

  • Compare coverage and premiums

  • Check claim settlement ratio

  • Read policy terms carefully

  • Avoid unnecessary add-ons

Common Insurance Mistakes to Avoid

  • Being underinsured

  • Choosing insurance only for tax saving

  • Not reading policy exclusions

  • Delaying insurance purchase

Conclusion

Insurance is a critical part of financial planning. The right insurance policy protects your income, savings, and loved ones from unexpected events. Choosing the right coverage at the right time ensures financial stability and peace of mind.