National Insurance Awareness Day 2024: The low rate of insurance penetration in India serves as a sobering reminder of the financial strain and crisis that millions of Indians face in the event of unfavorable events such as accidents, terminal illnesses, etc.
Every year on June 28, National Insurance Awareness Day serves as a chance to spread awareness of the value of having insurance. The correct insurance helps a person guarantee his or her family’s future from early adulthood to retireme–nt. Casparus Kromhout, MD, CEO of Shriram Life Insurance, states that insurance is essential for protecting a person’s important assets, such as their home, car, and business, from harm, theft, or liability, in addition to providing personal coverage.
“A lot of insurance products have tax advantages and can even be employed as financial instruments. This implies that you can increase your wealth and make your money work for you in addition to taking advantage of the protection that insurance offers, according to Casparus Kromhout.
Why understanding insurance is essential to financial stability?
Financial security depends on having a good understanding of insurance, and thanks to the regrettable COVID-19 pandemic, this awareness has significantly increased. Even though most individuals realize how important insurance is, they frequently put off getting a coverage because they have false beliefs about how much it will cost or because they think they can wait without risking anything. Despite improving literacy rates, a major contributing factor to India’s low insurance penetration rates is procrastination.
In order to genuinely guarantee one’s financial future, it is imperative to not only understand the importance of insurance but also to acknowledge its urgent requirement.