by Mr. Amarnath Ananthanarayanan, Bharti Axa General Insurance
Investing in an insurance cover is not only important. But, also very essential in this day of medical inflation & increasing cost of living.
Insurance should not be looked at as a tax - saving instrument or as an investment tool, but as security towards unexpected circumstances. While a life insurance cover will let your family be financially secure if you die, general insurance covers will be helpful while you are still alive.
Health insurance covers your medical expenses, either in reimbursements or / direct cashless payment mode against hospitalisation.
Car insurance gives you money if your car meets with an accident and a few cover costs for people you might injure.
Home insurance covers the damages in case there is a fire, burglary or / any damage to contents of your house.
For any general insurance product, you pay every year, and you are happy to not have to claim because it means you have not had an unfortunate accident.
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| Mr. Amarnath Ananthanarayanan, Bharti Axa General Insurance |
The amount you pay as premium for a desired sum insured is calculated using premium calculators that take into account your monthly income, age, medical history (for a health cover), geographical location (for a motor cover), market value (for a home cover) and such other factors specific to the cover you opt for.
One should not mix investment and insurance.
When you invest, whether it's in stocks, bonds, gold or / mutual funds, you are betting the value of the asset will be more in the future than what you paid for it.
When you buy insurance, you are betting that an event will occur that causes harm to you or / your property, insurance protects you against the financial loss that may come out of such harm.
Insurance, unfortunately, is sold and not bought.
One must invest for future & insure for protection. Insurance is for protection and not for wealth creation.
Remember, when life does not go according to plan, an insurance cover can protect you & your loved ones from the unexpected. Invest in insurance.
About the author..!
Mr. Amarnath Ananthanarayanan is CEO & MD at Bharti Axa General Insurance
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