Insurance provides financial protection against potential losses or unforeseen events, helping individuals and businesses manage risk and maintain financial stability.
Objectives of Insurance:
- Risk Protection: Safeguard against financial loss due to accidents, illness, or other unexpected events.
- Financial Security: Provide a safety net for individuals and families during emergencies.
- Wealth Preservation: Protect assets and maintain wealth for future financial goals.
Types of Insurance:
- Life Insurance: Provides a financial benefit to beneficiaries in the event of the policyholder\'s death.
- Health Insurance: Covers medical expenses, ensuring access to healthcare without financial strain.
- Property Insurance: Protects property against damages from natural disasters, theft, and accidents.
- Auto Insurance: Covers damages or loss related to vehicles and provides liability protection in accidents.
- Liability Insurance: Provides coverage against legal liabilities, often used by professionals and businesses.
Benefits of Insurance:
- Peace of Mind: Reduces financial stress by offering coverage in times of need.
- Tax Benefits: Many insurance policies offer tax-saving advantages under relevant tax sections.
- Wealth Building: Some policies, like life insurance, include investment components to build wealth over time.