How to insure your financial future from an unknown tomorrow?

The low insurance penetration in India is a stark reminder of the vulnerability of millions of Indians to financial burdens and crises in times of unforeseen incidents like terminal illness and accidents.  From early adulthood to retirement, the right insurance helps people secure the financial future of themselves and their families.  

Casparus Kromhout, MD & CEO of Shriram Life Insurance says that insurance is crucial for personal coverage as well as for safeguarding a person's assets like home, car, and business from damage, theft, or liabilities.

“Many insurance products offer tax benefits and can be used as investment tools. This means that while you're enjoying the protection insurance provides, you can also grow your wealth and make your money work for you," said Mr. Kromhout.

Crucial for financial security

Insurance awareness is crucial for financial security, as the unfortunate COVID-19 taught us. Despite understanding the importance of insurance, people tend to postpone purchasing a policy, often due to misconceptions about the costs or believing they can delay it without consequence. This procrastination is a significant reason why insurance penetration remains low in India, though education levels have risen. It's essential to be aware of the need for insurance and recognize its immediate necessity for securing one's financial future. 

Not always expensive

Contrary to popular belief, life insurance doesn't have to be expensive. Premiums can be adjusted to fit different budgets, and options like term insurance offer substantial coverage at affordable rates. You can buy policies for yourself, your spouse, or your children. Joint policies and child plans provide comprehensive coverage for your loved ones too.

“India, one of the fastest-growing insurance markets, still has a low insurance penetration rate of 4% of its GDP, leaving a sizable gap. This gap is largely due to a lack of awareness and accessibility of insurance and its critical role in financial stability during unforeseen incidents. On this National Insurance Awareness Day, the industry must spread awareness and work towards closing this gap," said Dhirendra Mahyavanshi, co-founder and CEO of Turtlemint.

Plenty of options

“Understanding insurance options and regularly reviewing policies are key steps to achieving comprehensive financial security. Adequate insurance coverage protects against unforeseen events, reducing the financial burden caused by accidents, illnesses, natural disasters, or other unexpected circumstances," said Shashi Kant Dahuja, chief underwriting officer, Shriram General Insurance.

“Health insurance plays a vital role in securing a healthier future for all," said Prasun Sikdar, MD & CEO, ManipalCigna Health Insurance. “Health insurance is a living benefit product. Just as mutual funds are essential for financial growth, health insurance is crucial to access easy and lifetime quality healthcare without the burden of unforeseen medical expenses." 

                                          By arrangement with livemint.com