Insurance is one of the necessities and requirements that an individual needs so that they can live life comfortably and with the assurance that in the case of anything, they have the backup and protection from the service providers. It also gives one the peace of mind that as long as they pay the premiums on time, the service provider has the obligation to provide the packages at the right time and when in demand. It is also important to note that insurance gives a person security in terms of their health, education or life depending on the type of package and cover they have. Ignorance is one of the limitations that the insurance industry faces as people do not know the importance of insurance in their lives as well as the role it plays in ensuring that they lead their lives well. On a personal level, insurance is something that every person should have and should consider since there are many affordable packages in the market. Based on the stage in life, one needs to evaluate and make a plan on what suits them best as well as the expectations they have in the future. Therefore, as a student, this study will focus on the importance of insurance to the life right now and in the future. It will also focus on the thoughts, ideas, challenges that individual faces and how to overcome them.
Relevance of insurance packages
Modern insurance packages have adopted the idea of savings policy which helps an individual form the discipline and character of saving. It also allows one has the right attitude towards money at a young and it is worth noting that there is no limit on age on when one can take the plan. One sets aside a considerable amount of money at a month or agreed period and contributes and after the maturity period, then they can collect the money and invest it in the right areas. The advantages of this are that the money earns an attractive amount of interest and one can take the cash and use in the future. Some of the challenges that exist include loss of work in the process and one may lose the money invested altogether.
Life cover which touches on education ensures that the beneficiaries education plans are covered whether the policy taker is alive at the time of maturity or not. It is security and gives the children assurance that despite what might happen, they will get quality education up to the level that their guardians specified. It protects the beneficiaries from the lack of education is they lost their parents at one point in life. the policy taker should ensure that they specify a trustworthy individual who will manage the funds once the insurance company releases the funds. It is also the security of education as a gift from the parents or guardians. One of the challenges is when a trustee may fail to use the money for the intended purpose and use it to do their other activities. There is also the aspect of children dropping off from school which may distract the parents from their original plan. However, the benefits are more than the challenges.
Health cover is one of the most important covers. Life is unpredictable and comes with many challenges and unseen circumstances. It means that disease may strike at any time and there may be a need to undergo an extensive surgery or process in the medical field that may require a large amount of money. In times of need and emergency, it is almost impossible to get a large amount of money in a lump sum. Insurance covers step in and help in reducing the impact of the financial burden that individual faces. Taking a cover for the family and covering their health also gives an assurance that their health is a priority. More to that, quality health care is important to children and adults that may require specialised treatment. There are also many service providers in the market and one has the choice to make on what they can afford. Health cover helps in admissions and surgeries as well as international health care that may need a patient to travel to another country for specialised treatment.
For a student or any other adult, it is important to make arrangements from an early age and start with the covers which are most affordable. Once an individual attains the legal age of eighteen years, they cease being under the cover of their parents and guardians which mean that one needs to make personal decisions. For instance, after college and in the first job, one can consider taking a savings policy cover so that they can start saving their money from a young age. After maturity, they can then invest or purchase a type of property depending on their preferences. Hence, I consider insurance as a priority in my life.
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