Why do you need insurance

Have you ever thought of buying insurance? Is it even worth it? What is the importance of buying insurance? In this post, I will discuss the importance of buying an insurance policy in one’s life and what benefits you could avail from it. So, continue with this article to find more information.

I do not intend to scare you or create any panic in your mind but in today’s harsh world any tragic event or accident can wipe out all your wealth and savings that you have earned by years of hard work. However, you should not be disheartened by thinking about tragic events that are not very likely to happen, but yet you must be prepared for the worst. A proper insurance policy taken at the right time might prove to be a blessing for you at strenuous times. Having the right type of insurance assures you of not losing your savings to any catastrophic event that might take place in your life, and also, most importantly it gives you security and peace of mind.

Now that you know the importance of buying insurance, let us discuss some of the types of insurances that are commonly bought by people nowadays. Since I am residing in the UAE, so I will try to give you some basic information about the types of insurances bought in the UAE as well as the names of some of the best insurance companies in the UAE.

1. Life Insurance

Life Insurance is basically a contract bond between you and an insurance company where the company promises to pay a sum of money to your nominated person on your demise in exchange for the premium amounts that you have paid during your policy period. Life insurance can be further classified into three types – Whole life insurance, Universal life insurance, and  Term life insurance. Zurich Insurance, AXA Insurance, MetLife Insurance are some of the renowned insurance companies in the UAE.

2. Motor Insurance

Motor Insurance is basically an assurance given by the insurance company to cover all damages caused to or caused by your vehicle in the event of an accident. This insurance is further classified into three types – Two-wheeler insurance, Car insurance, and Commercial vehicle insurance. Some of the motor insurance companies with good claim settlement ratio in the UAE are AIG Car Insurance, Al Fujairah National Insurance Company, Oman Insurance Company, AXA Car Insurance, Noor Takaful, and Orient Insurance Company.

3. Health Insurance

Health Insurance assures to cover all your hospital bills in the event of any medical emergency you might face. The best thing about it is that it secures your bank account from being drained out by the heavy bills of private hospitals, in case you are being treated for serious medical conditions.  Health insurance is divided into 8 types – Individual Health Insurance, Critical Illness Cover, Family Floater Insurance, Senior Citizen Health Insurance, Group Health Insurance, Maternity Health Insurance, Personal Accident Insurance, and Preventive Health Care Plan. Some of the companies providing the best deals in health insurance in the UAE are AXA Gulf Insurance, Dubai Islamic Insurance & Reinsurance Co., Ras Al Khaimah National Insurance Company, Emirates Insurance Company, and Abu Dhabi National Insurance Company.

I hope this article has cleared most of your doubts related to insurance. If you have any queries please let me know in the comment section.

Leave a Reply

Your email address will not be published. Required fields are marked *