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Insurance Article

How You Can Use an Insurance Claim to Deal with Your Financial Worries

December 21 2018

Alleviate your financial worries by choosing the right insurance policy

According to the National Sample Survey Office (NSSO), 8 out of 10 Indians do not possess any kind of health insurance. In addition, 86% of the rural population and 82% of urban households are uninsured. The low penetration of insurance coverage for the Indian population could be attributed to poor understanding of insurance products and lack of affordability which has dampened the industry’s growth in the country.

The statistics shows a huge window of opportunity for insurance companies to make the most out of this untapped market. However, in order to do so, they need to take measures to increase awareness towards risk factors in one’s life pertaining to their health, home and property.

Importance of insurance

Insurance ensures you and your loved ones are covered in the event of an unforeseen circumstances such as death, disability, loss of property and car accident, to name a few. The uninsured population of India, often use their life’s savings when struck with a health scare or an accident, but, do not prefer to buy insurance policy which could safeguard their interests under such circumstances. Buying an insurance cover is often an economical tool in the long run, as opposed to exhausting one’s life savings in case of an unfortunate incident.

Let’s look how insurance claims can ward off your financial worries and help you lead a peaceful and worry-free life.

Health insurance

Everything takes a back seat when it comes to the well-being of you and your loved ones. Rising medical costs, stressful lifestyle and rising occurrences of diseases have made health insurance even more important to be considered a necessity to keep financial worries at bay. Health insurance not only covers you in times of medical emergencies but also prevents the proverbial burning of a hole in your pocket. Opting for health insurance can prove to be a wise decision for your financial planning as it often provides you with cover for pre-hospitalization, hospitalization and post-hospitalization costs, out-patient treatment costs, diagnosis charges, day care processes, etc., depending upon the type of policy you choose.

There are different types of health insurance products to suit your needs and preferences. For example, you may opt for a health insurance for yourself, or take it as a family package to insure all the members of the family under the policy. In addition, you may also go for critical illness insurance as an add-on to your regular health insurance policy. Critical illness insurance covers your financial expenses in case you are diagnosed with a critical ailment, the treatment costs of which are usually very expensive.

Accident insurance

Be it minor or life-threatening, accidents can be life-altering events for you and your family. An accident can leave you with a permanent disability or even result in death. Although you cannot guarantee your safety from an accident all the time, you can minimize the financial risks of an accident on you and your family. A plethora of insurance companies provide accident insurance so that you are covered for the medical expenses incurred due to the accident.

In addition, in the event of death the insurer will compensate the sum insured to the nominee. You may opt for an accident insurance policy for yourself without undergoing any medical tests. Moreover, you may also get it customized as per your budget, with coverage starting from Rs. 3 lakhs . Ease of accident claims processing makes it easier for you and your family to be financially safe during these difficult moments.

Home insurance

People often dream of buying their own house and consider it as a life goal. But what happens if your home is not insured and is exposed to damage, both natural and man-made, or even theft for that matter? The pain of rebuilding/restoring your house is draining, emotionally as well as financially. A home insurance policy covers your house against man-made or natural disasters such as fire, theft, earthquakes, storms, lightning, strikes, riots, etc.

You can safeguard and secure your house from such events with the help of a home insurance policy. Usually, insurance claims help you pay off the financial expenses that are incurred due to an unpredicted event and ensure your financial condition is unaffected. Make sure you choose the insurance policy considering your need, situation and financial condition. ICICI Lombard provides various insurance policies suited to your needs and preferences.

Related Article:

Why Is Insurance Still Not a Priority for Most Indians?
Risks Associated with Being Underinsured

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