When we are young, healthy, and live the best life possible with multiple sources of income, we may wonder why we need to get insured. Saving for an emergency is one of the most important financial decisions you can make, regardless of how much money you make, how well your business runs, or how healthy you are. Insurance is an important part of one's financial portfolio. It provides you with financial protection against a variety of life's unforeseen events.

There are a variety of insurance products available, including life insurance, health insurance, travel insurance, motor insurance, etc. In the event of a disaster, the primary goal of any insurance policy is to protect and relieve you of a substantial financial burden.

In this article, we will look at the top seven reasons why we need insurance.

Financial back-up plan in case of emergency: Unexpected events like illness, injury, accidents, and even death can put your family through a lot of stress. It is preferable to plan ahead of time for such events by purchasing insurance policies that will assist you financially so that you may concentrate on your peaceful life.

Ensures the future of your child: Your child's future is better protected with insurance. With the benefits from your Insurance policy, you can cover the costs of getting your child a good education and also utilize the benefits from your plan for your child's wedding expenses.

Ensures a secure retirement: Are you planning to save money for your retirement? There are retirement policy insurance plans that allow you to preserve a portion of your income over time and ensure your financial security after you retire. You can enjoy maturity benefits in plans such as endowment policies, which can serve as a dependable corpus to begin your retirement phase. You can even choose pension plans that allow you to receive lump sum payments.

Protecting the future of the family: Your current situation may be stable, with a consistent revenue stream that satisfies your family's needs. However, life is unpredictable, and life can be shattered by unforeseen events. Your family may struggle to meet the standards in the future without you. You will be ensuring your family's future by purchasing term insurance, which will provide them with a lump sum payment to assist them in meeting their financial obligations.

Encourages financial savings: Several life insurance plans, such as a money-back policy, assist in the creation of regular savings by allocating some funds in the form of a premium each year. After a few years of investing in the policy, a money-back policy pays out an amount to the policyholder.

Provides peace of mind: Insurance provides you with peace of mind in addition to financial security. Your home insurance policy will assist you in obtaining coverage for property damage. When you and your family are hospitalized, your family floater medical insurance plan will cover you and your family. In a time of crisis, any insurance plan can be useful.

Provides tax advantages: The policyholder's premium for a term insurance plan is eligible for tax benefits under Section 80C of the Income Tax Act of 1961. Term insurance premiums paid for self, spouse, and children throughout a fiscal year are eligible for a tax benefit of up to Rs 1.5 lakh.

Final thoughts:

While no one can predict the future or prevent unexpected events, all we can do is obtain some insurance coverage. Insurance, of course, plays an important role in your life by assisting you and your family in obtaining financial stability in the event of an emergency. Insurance isn't just a tax-saving strategy; it also provides security in advance. You may believe that insurance premiums are expensive, but not having the proper type of insurance could be far more costly.