How Insurance Works
Insurance is a financial safety net designed to protect you and your loved ones from large, unexpected expenses. Whether it's a medical emergency, accident, or income loss, insurance helps reduce the financial burden by sharing the risk with the insurer.
Understanding the Basics
- Premium: The amount you pay regularly to keep your insurance active.
- Sum Insured: The maximum amount the insurer will pay when you make a claim.
- Claim: A formal request you make to the insurer for payment or services under your policy.
How the Process Works
- Choose a policy based on your needs—health, life, term, or vehicle insurance.
- Pay your premium regularly to keep the policy valid.
- In case of a covered event (e.g., hospitalization), submit a claim to the insurer.
- The insurer verifies the claim, and if approved, pays out the benefit or reimburses the cost.
Why It Matters
- Protects your savings from large unexpected expenses
- Provides peace of mind during emergencies
- Ensures financial support for your family
- Promotes disciplined financial planning