BASIC INSURANCE CONCEPT
Basic concept of insurance is to cover the various risks we face so that in the event of their occurrences, the sufferer gets economic compensation from the Insurance Company. Followings are the risks, we are exposed to :
DEATH- Risk of untimely DEATH
DISEASE -Risk of DISEASE
DISABILITY -Risk of DISABILITY
In the event of a family’s sole breadwinner’s sudden demise, his family becomes income less. This income can be protected by adequate insurance on the life of breadwinner.
DISEASE is such an item that is available free in this world but not its treatment. Every disease brings with it economic sufferings as the treatment costs are very high. This suffering can be reduced by appropriate health /medical insurance for all members of the family.
In the event of Disability of any of the family members, cost of treatment increases significantly. In the event of disability of breadwinner it is double whammy because apart from increase in treatment costs, there is reduction in income as well.
Therefore all Insurances should be bought with the consideration of above risks in mind. Adequacy of the insurance is must to reduce financial setbacks in the life.
