Buying insurance? 7 ultimate reasons getting insured can be a life-saver

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Life is full of surprises. It can throw both the good and the bad in your way. When bad things happen, make sure you are prepared financially with insurance. Here are the 7 reasons why getting insured can be your life-saver.

1. Insurance manages life’s risks.

Situations like critical illness, accident and death are life’s uncertainties that are very stressful and costly. Insurance helps you manage these circumstances by letting you worry less about their costs, allowing you or your family to attend to more pressing matters during emergency.

2. Insurance can replenish your income.

When you get sick and hospitalized, you will not be able to work for a few days to several weeks.

This becomes a concern when you no longer have any paid leaves to make up for your absences from work. With an income protection cover, you can receive benefits equal to the income loss for the number of days that you spend at the hospital.

3. Insurance can protect your wealth.

Being sick is very expensive, especially when you are stricken with a critical illness. Your entire life’s savings can be wiped out clean by rising costs of medical care. Some families are forced to sell houses, vehicles, and other assets to pay for the needs of a member who is gravely ill.

You can avoid having to liquidate the wealth you have built for years. By getting health insurance, you or your family will be provided with a sum of money to help pay medical costs.

4. Insurance can protect your properties.

Just bought a multi-million house? Got a brand-new luxury car? Purchases of assets with steep price tags can be risky. Your new home may be located in an earthquake-prone area, or fire will break out in the neighborhood that can. Your vehicle could be destroyed in a road accident.

Without property cover, you absorb all the risks in acquiring these assets. If you have adequate cover, however, you can rest easy knowing your insurer will pay you a lump sum benefit when your properties are caught in a natural disaster or a man-made accident.

5. Insurance is crucial in financial planning.

Without insurance, you are likely to make financial decisions that are not to your advantage. When you are in crisis and in desperate need of money, you might put your assets on sale at a bargain price. You can also be pushed to redeem your investment shares at a loss, and even take on bad debts with usurious interests.

6. Insurance is an act of charity.

It is a way of paying yourself. It buys you the freedom from the anxiety of financial ruin when the worst in life happens. In a way, it’s the financial equivalent of a safety vest or a parachute.

Most important of all, it can be your last act of selflessness. The people you love can live on with a reasonable lifestyle when you pass away with a life insurance.

7. Insurance can give peace of mind.

Having an insurance is essentially transferring the risks inherent in living to a third-party, the insurer. You could receive benefits when you are able to meet conditions of release. This allows you to have fewer worries and be free to pursue the things that make your life more meaningful.