Life is unpredictable. A sudden accident, hospital emergency, or even a natural disaster can lead to huge financial setbacks. Insurance works as a safety net, ensuring you don’t drain your savings when the unexpected strikes. Let’s look at practical, real-life examples of how different types of insurance protect against unforeseen expenses.
1. Health Insurance – Saving You from Medical Bills
Example: A family member needs emergency surgery costing ₹5 lakh.
Without insurance: Entire cost comes from your pocket.
With insurance: Hospital bills are mostly covered, reducing your financial burden.
Benefit: Prevents medical emergencies from wiping out savings.
2. Motor Insurance – Covering Accidents and Repairs
Example: Your car is badly damaged in an accident.
Without insurance: Repair costs of ₹1.2 lakh fall on you.
With insurance: Comprehensive coverage pays for repairs, and third-party cover handles any liability.
Benefit: Protects from high repair and liability costs.
3. Life Insurance – Supporting Dependents
Example: A sole earner in the family passes away unexpectedly.
Without insurance: Family struggles with loss of income.
With insurance: Term plan provides ₹1 crore to the family.
Benefit: Ensures financial security for dependents.
4. Travel Insurance – Handling Cancellations and Emergencies
Example: You fall ill before an international trip worth ₹2 lakh.
Without insurance: Entire booking amount is lost.
With insurance: Trip cancellation cover reimburses the expenses.
Benefit: Protects against financial loss from sudden changes.
5. Home Insurance – Protecting Property from Disasters
Example: A fire damages your home, causing losses of ₹15 lakh.
Without insurance: You pay for repairs alone.
With insurance: Home insurance covers rebuilding and replacement costs.
Benefit: Shields your biggest asset from natural or accidental damage.
FAQs
Q1: Is insurance worth it if I have emergency savings?
Yes. Insurance covers large expenses that can exceed your savings.
Q2: Can one person hold multiple policies?
Yes, many people combine health, life, and motor insurance for full protection.
Q3: Do all claims get approved?
Claims are approved if the event is covered under policy terms. Always read exclusions.
Q4: Which type of insurance is most important?
Health and term life insurance are the most critical, followed by motor insurance if you drive.
Q5: How does insurance give peace of mind?
Knowing you’re financially protected reduces stress during emergencies.
Published on : 12th September
Published by : SMITA
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