Insurance is one of the most crucial parts of financial planning. It is challenging to take precautions all the time, and in the case of a mishap, people end up paying significant amounts from their saving pockets. Insurance has multiple benefits like -

  • Insurance helps in Transferring risk. By paying a certain amount of premium, you get to transfer your risk to the insurance companies. This helps you in focusing on other essential things in life than some probable losses.
  • Insurance protects your property from any potential damages. If you own an expensive piece of property, it is necessary to safeguard that from any losses.

  • Insurance Protect your family against any future uncertainties. Having Life insurance helps you protect your family against any debts that you might leave behind or might even support them to survive.

  • Out of pocket health expenses cost a lot. To cover these up, there are several types of
    Health insurance schemes that help in saving a substantial amount that goes out for healthrelated issues.

There are several types of insurances available, and all carry different kinds of benefits. Majorly
there are two types of Insurances


It is a contract that helps people in the case of death or disability. It helps the families of the insured after retirement as well. Life Insurance helps you in securing your family, financially even in your absence. Different types of Life insurance policies are-


  • Premiums you pay can be deducted from your total taxable income (The premium deducted should not exceed 10% of your sum assured.)



It offers financial compensation in other cases than death. It compensated your financial losses related to fire, theft, health travel, etc. Simply, it provides protection to your assets. There are different kinds of general insurance.


  • Protection of assets against any losses.
  • Financial security against theft, health issues and more
  • Helps in financial planning of future without the fear of losses.
  • Health care benefits
Overall, Insurance is one significant part of financial planning.