How Can Insurance Empower You? | Step 6

Did you know that people spend 30 minutes to 2 hours every day worrying about finances? As we work towards achieving our financial goals, insurance protects us from risks. Insurance ensures that we stay on track despite uncertainties by covering financial losses. Without insurance, we would constantly worry about what would happen to us and lose sight of bigger goals in life.

Let’s see how insurance plays a crucial part in our people’s lives:

Health Insurance

Raj and Simran were a newlywed couple. They had an extravagant wedding and moved into their own house to start their new journey. They planned a vacation to Switzerland to unwind from the bustle of the wedding.

They made a six-month advance booking with the travel agency to get a good deal. With huge wedding expenses and home loan EMIs, they overlooked taking insurance. They presumed they were young and healthy and did not require insurance.

Hospitalisation Expenses

Unfortunately, Raj and Simran met with a car accident before they made it to Switzerland. Both were critically injured and had to be hospitalized for two weeks. They started recovering quickly with several medical treatments. The medical expense meter, however, started rising.

The cost of hospitalization, treatments, and medicines was huge. This caused an enormous strain on their already tight finances. The couple covered the hospital bills from their savings and investments.

Vehicle Insurance

Their car involved in the accident was wrecked and was beyond repair. The vehicle was fully insured, due to mandatory vehicle insurance rules. The insurance company settled claims for the damage to Raj’s car and they reimbursed the damage to the other party affected by the accident.

Travel Insurance

The vacation the couple had planned had to be cancelled at the last minute. The majority of the payment to travel agency was non-refundable. Cancellation charges of hotels and flight tickets were high. The couple hardly received any money on cancellation.

Home Insurance

Raj and Simran spend the most time at the hospital taking treatments and their new house remained locked. A fault in the electrical wiring caused electricity spikes. The fluctuating current damaged their fridge, washing machine, and expensive tablets. They didn’t even know that a home insurance policy would insure their assets and appliances in the house.

Insure Be Sure

Recovering from such misfortune is challenging. Insurance acts as a saviour during difficult times. Health insurance would have covered their hospital and medical expenses. It may also cover any medical complexities that arise post the treatment from an accident. The vehicle insurance protected them from damage to their car and associated third party liabilities. Raj and Simran could have been compensated for the entire loss incurred due to cancellation with a comprehensive travel insurance policy.

Homeowners’ insurance covers damage to the structure and personal property. After a prolonged stay at the hospital, they wouldn’t have had to worry about building their home from scratch.

In the absence of insurance, it was challenging for Raj and Simran to return to normal. Unfortunate incidents like these make people’s plans go astray. It could exhaust their savings. It creates a dependency on friends and family. Some seek high-interest personal loans or part with their assets when pushed into a corner.

Insurance empowers people to be independent and face challenges. It lessens their financial worries due to unforeseen circumstances. It acts as a supports for people to get back on track without any hitches. It enables them to spend more time working on their goals than worrying about their finances.

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