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The reasons for buying insurance policies

The reasons for buying insurance policies

If you are undergoing some common illness such as cold, cough, digestive problems, etc then you can recover quickly.

September 29th, 2020

If you are undergoing some common illness such as cold, cough, digestive problems, etc then you can recover quickly. But, a person suffering from serious illnesses such as corona virus, heart problems, chest pain, etc cannot easily recover. They should be preferably hospitalized to avail timely treatment. If these diseases are not quickly treated, then a person can even experience dire consequences. Some people are even losing their lives due to financial crisis. Even if you are not affluent, you can become an insurance policyholder and make timely payment to the hospitals. You can pay regular premium to your insurance service provider and stay secured. You should pay GSTfor every premium and save your income taxes. The insurance GST rate in India is 18% and it was 15% earlier. So, the policyholder should pay some service charges to the insurance service provider in the form of GST.

Why should you pay GST for insurance premium?

The consumer pays indirect taxes to the supplier or service provider at the point of consumption. So, GST is a tax levied by the government to prevent multiple payments. It is levied on goods and services at the stage of consumption. When you buy an insurance policy, you are availing services from your insurance service providers. You should pay some amount to your insurance health providers for providing services. Also, the government provides concession for tax payment if you are an insurance premium holder. You can enjoy the benefit of rebate us 80 of income tax. Today the insurance GST rate is 18% and hence the tax payers can save tax.

The insurance premium should be paid regularly by the policyholders to enjoy benefits after maturity.

Why do you require insurance policy?

Today, man is using sophisticated tools and technologies, but is not able to prevent many types of diseases. The doctors are also using the best tools for treating the patients. They are providing the best treatment using advanced tools such as CT scan, AI devices, etc and resolving various health issues. But due to environmental threats and invention of biological weapons people are undergoing serious health complications. They are not able to prevent any disease using the best technologies. Today, people are also deteriorating their health due to changing lifestyle. If they are facing chronic illnesses today, later these problems can become severe. So, buying the policy from care insurance provides long-term health and financial benefits.

Some people are vulnerable to various illnesses due to weaker immunity system. So, they cannot easily recover from any illness. Such people require frequent medical care and hence always incur medical expenses. If you visit any clinic or a hospital for medical consultation, then the doctor recommends physical examination, check-up, blood tests etc. He prescribes medications to the patients and they should regularly consume medication. If they are already the policyholders, then they can easily seek treatment. They need not always withdraw cash and keep it in the wallets. If a person is suddenly hospitalized due to severe symptoms, then they should pay the doctors as quickly as possible. They cannot visit any ATM centers and withdraw cash. If they are healthcare policyholders, they need not worry about payments. The care insurance directly forwards the amount to the concerned hospitals. Then, they can undergo the best treatment in the best hospitals and quickly recover from any illness. The insurance firms transfer the amount to the hospitals to meet expenses such as room rent, surgeries, IV injections, different tests and examinations etc.

What type of policy should you buy?

The insurance providers offer different attractive schemes and you should select the best policy to tailor your needs. If you are constantly travelling from one place to another, then you should buy a travel policy. If you frequently visit abroad, then you should purchase an international travel policy. When you are moving from one place to another, then you are exposed to potential health risks. Some diseases such as corona virus are spreading due to physical contact from one person to another. Due to weather or climatic fluctuations, you may experience illness. You should buy a policy for pre-existing illness if you are anticipating any health problem. If you are feeling uneasy frequently and are unable to detect the problem, then you require medical care. The people with weaker immunity system should also buy an insurance policy. They are prone to various illnesses due to external factors and environmental threats. You can buy an insurance policy beneficial to the family. Some diseases spread easily via food, water, air or social contacts. If all the members of the family are sick, then they incur huge medical expenses.

Factors to be considered before buying an insurance policy

Before purchasing any policy, you should consider various factors such as premium, policy tenure, sum assured, maturity benefits, etc. You should be able to pay regular premiums to avail financial benefits.



Northern girl Laura is the epitome of a true entrepreneur. Laura’s spirit for adventure and passion for people blaze through House of Coco. She founded House of Coco in 2014 and has grown it in to an internationally recognised brand whilst having a lot of fun along the way. Travel is in her DNA and she is a true visionary and a global citizen.