Why Insurance Matters
Loans and investments help you build toward financial goals; insurance helps protect that progress from being derailed by an unexpected medical emergency, accident, or loss of income.
Common Types of Insurance
- Health insurance — covers hospitalization and medical expenses
- Life insurance (term plans) — provides financial protection for dependents
- Motor insurance — covers vehicle-related damage and liability
- Home/property insurance — covers damage or loss to your property
Factors That Affect Premiums
- Age and health condition (for health and life insurance)
- Sum insured or coverage amount chosen
- Policy tenure and type of plan
- Lifestyle factors, such as smoking status
- Claim history, for renewals
What to Check Before Buying a Policy
- Coverage inclusions and exclusions — read the fine print
- Waiting periods for specific conditions (health insurance)
- Claim settlement process and network hospitals, if applicable
- Premium affordability over the long term, not just the first year
Insurance is one of the core pillars of a personal finance plan alongside saving and borrowing wisely.