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100 FAQ's on Basic Finance

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Importance of life insurance

It's easy to lose sight of the significance of being prepared for the unexpected in everyday chaos. We often find ourselves caught up in the present, juggling chores and chasing our goals. But, amidst the chaos, there is one critical issue that requires our attention: life insurance.

Some of us have heard people ask, “Why waste money paying premiums on life insurance?” or “Why is life insurance important?

In this module, we will explain the importance of life insurance. 

Why Health Insurance is Important?

  • Dealing with High Medical Costs: Health insurance protects your finances from expensive medical bills, covering everything from ambulance fees to hospital stays.

  • Critical Illness Coverage: Some policies offer protection against major illnesses, providing a lump sum payment if you're diagnosed with a covered condition.

  • Cashless Claims: With health insurance, you can get treatment at network hospitals without paying upfront. The insurer handles the costs directly, except for non-covered expenses.

  • Individual Protection: Individual plans offer better coverage than group plans and ensure you're still covered even if you leave a group plan.

  • Tax Benefits: Paying health insurance premiums can save you on taxes. Depending on who's covered, you can claim deductions up to certain limits under Section 80D of the Income Tax Act, 1961.

It is important for us to discuss the importance of life insurance with our friends and family and help them to realize why is it important to get life insurance.

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Units 100/101