- Personal Finance
Why we need Insurance
Very often we see insurance as for economic benefits only. It is true that economic security is one of the key factors in deciding for Insurance. But, in depth , the meaning of Insurance can be interpreted as love, future planning , securing the life , rays of hope for younger Generation, Business base etc., People may thing by insuring some one or business , we bounded by paying premiums and spending money. In reality , we are relieving ourselves and adding hope to our future. People who insure , started regulating their life and gets the clear picture about the future. unlike other investment , insurance can't be considered as perfect investment , because of the depreciating money value. But we shall improve our life , by utilizing the benefits offered by insurance as such.
All over the world ,there are so many insurance policies are there to serve us. Choosing the best one is left to us. In my point of view, insurance policies can't be influenced by agents or by the companies. The policy should be chosen by the beneficiary. You can choose the Insurance policy based on your requirement and what you are aiming for the future. This is applicable for your children , spouse and everyone.
Secondly, you consider of the money value after five or any number of years , you are going to insure. This is applicable for personal insurance as well as business insurance. Based on this also you can the policy .
Tips to choose insurance
When you are choosing a insurance policy , whether for you or your daughter, or your son or your spouse, don't forget the following tips.
1. The Age factor
2. The benefit you intended to receive. May be for higher education, after life to your spouse or son or daughter, or settling in life etc.,
3. The premium amount . Don't plan for the future by spoiling the present. Most people expect something special in insurance by sacrificing the present life.
4. For daughter or son, you start the insurance policy , when their new born. This will assist you in unexpected circumstances arising in life.
5. Avoid over expectation. Money value can't be the same as now.