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Four Factors That Will Convince You To Actually Buy an Insurance Cover Here are few logical reasons for people who are reluctant to take an insurance cover for themselves.

By Kamesh Goyal

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Your day is going well, everything is as usual. From booking a cab to your workplace to updating your status on Facebook/Whatsapp, when all goes well, why would you think of protecting yourself against an unforeseen situation? An important topic such as insurance is something that most people don't consider. They start thinking about insurance only when there is a need.

Insurance companies, for decades now, have handled the varied reasons people put forth for calling off buying insurance such as, "Why invest in something, which will reap benefit only when I'm dead?'; Insurance is only applicable for old people; I'm strong and healthy'; "I will invest only to get a tax benefit'. Despite the existence of the insurance industry for decades now, millennials know very little about it. Insurance provides guaranteed financial security when it is needed the most. If you are willing to protect yourself from an unforeseen loss and minimise the risk, you can then take up insurance.

Here are a few key factors that might convince you to buy insurance.

  • A State of Tranquillity With Assured Financial Security

    With insurance in place, it will help your pay-out at the time of unexpected distress and support your family to recover positively and move forward. Getting insured will help you prepare for what might happen next and give you immense confidence to handle emergencies that may arise.

    • The Industry has Varied Products and Services

      It's a great time to get insured. Insurance is no more only on life, but on a diverse set of products from mobile phones to flights. You should always opt for an insurance that will benefit your family, and which is affordable. Otherwise, it will only burden you with premiums. As a first step, buying insurance for new mobile phones, jewellery, car or travel insurance will help you understand how the process works. Later, you can buy insurance on something bigger, such as life, home or health.

      • Use of Digital Technology in Insurance

        Digital technology has made life easier for customers and new owners to understand the insurance sector. Technology is gradually marking its presence with players providing varied products online for better availability. For example, consumers often research their product on the Internet before investing. Hence, companies are seen adopting multi-channel strategies to understand how customers use channels that are available to them.

        • Effortless Claim Process

          The policy that you buy is an assurance that it will indemnify you when faced with risk or loss. With the insurance industry adopting digitization, claim processes have been reduced to merely three steps, thus encouraging more people to get insured. For example, the process to apply for claims has become so efficient that there is no paperwork involved; just a simple click of the mouse or reporting of the situation with details to the insurance company and the claim money reaches the bank account within 24-48 hours.

          Conceptually, insurance is simple to understand, with certain factors contributing to making it remain fair and popular. When you are often being exposed to risk, the consequences become bearable when shared. You assume that the amount invested in timely assets is enough, but it is quite possible that it can end up costing more than you can afford. Therefore, it is important to take the necessary steps and protect yourself from situations, which at times can go beyond control.

          Kamesh Goyal

          Chairman, Digit General Insurance Company

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