Why do People Need Insurance

You cannot predict your future course of events that impacts you financially, your family on count of poor health, or an event that leads to loss of income to the family. Thus, the future is uncertain. Every individual needs insurance to protect themselves from future uncertain events such as fatal accidents, major health problem, earthquake, fire, goods damaged in a business, etc. Hence the need of the insurance:

1. Security for the family: Insurance gives financial security to your family members or to those who are financially dependent on you. Absence of any financial aid to your family would cause to suffer financially in the event of decease of breadwinner. Life insurance gives benefits to the dependents of the deceased for a specific period.
2. Protection of the assets: Every individual has some valuable assets in his/her life. We need to protect those assets against losses in their value. For example, to protect your home or land against loss from earthquakes and from floods, protect furniture against damage from fire accidents- all need insurance.
3. Support for the child education: All parents aspire to impart higher education to their children. Education insurance helps you to bear the unforeseen additional cost due to rise in tuition fees compensation; the additional expenses incurred in course of an education program.

For example your child joined in a university and later s/he knows that s/he joined a fraud university. Then your child losses academic year as well as money. If your children have education insurance, the insurance firm pays money which you thus loss. If you are already holding education insurance for your child's education. If your child gets a seat in a reputed university abroad. It costs very much to study there and the insurance firm bears the cost.

4. Security for the motor vehicle: To buy a vehicle – two-wheeler or four-wheeler, you need to have substantial amount at hand. It is this case that your need to insure your vehicle against risk of damage due a road accident. Everyone pays high amounts to get the car or motor vehicle. You need to get your vehicle insured to cover the risk of damage in road accidents. You cannot foresee an accident. If you sustain injuries from others' vehicle, you're entitled to get reimbursement of medical bills from the person the vehicle belongs to.
5. Security for business: While running business, a business person suffers so many losses like stock damage due to fire, bills not receivable from the customer, damage to the building due to earthquake, stock loss while transporting, conditions interrupting business and so on. Such risks are covered by business insurance.
6. Protection for health: Due to increasing pollution and changing weather conditions, every individual is more likely to suffer from health implications at different age. Health insurance covers the risk of fatal diseases that are likely to impair your productivity and consequent loss of income and employment by covering the expenses involving hospitalization.

Having understood all the above needs, take insurance to stay protected at difficult times.