Why we need Insurance?

What are top most reasons to take Insurance ?

1. Fear of death and Financial implications for dependents-
   If this is the reason that you are looking to buy your policy , please stick to it.Get a policy which only takes a premium to cover this risk.Death can be from natural reasons or can be by accident etc. Try to cover both reasons when you wanna insure yourself for this basic reason.
   
   
2. Fear of hospital/medical expenses from illness etc-
   To get treatment done for any medical emergency they some times take your yearly income in few days.So most of the salaried middle class is making sure they have medical insurance.One should go for health insurance these days.Most health insurance companies offer cashless hospitalization these days which is a very useful component for salaried individuals in case of medical emergencies.Health insurance is basically a general life insurance product but now Life insurance companies also offers some products which covers basic health covers.
   
   
3. Auto Insurance-
   Most of us love our vehicles more than ourselves so getting Insurance for your prized possession comes naturally.Anyways its a law in this country which mandates a must to have auto insurance in this country.One can have a complete comprehensive auto insurance vs to just theft and third part insurance.In this category also the private players are giving Cashless claim settlement features to capture market shares.
   
   
4. Income tax led decisions-
   These days to save tax everyone suggests you to buy insurance. Let tax saving be incidental to choosing a cover, not the sole force behind it.
   
   
5. Combining Insurance and Investments-
   Over in last few years insurance products has been sold more as an investment tool rather than a 'protection' vehicle. They are called Unit linked plans-Ulips.
   

Insurance Agents often succeed in their efforts owing to the following factors:

Providing rosy illustrations of future investment returns, conveniently side-stepping the basic question of whether the coverage amount contained therein is adequate or not.Stressing that an insurance-cum-investment policy compels the policy holder to be disciplined in their savings program and this aids in long-term wealth creation.

Now when stock markets are under bear phase one should understand that investment is different than just bundling both together.