5 Big Risks if you Remain Uninsured

Often, when we are young, the term savings plan is misunderstood or investing in a savings plan seems expensive and unnecessary, 'Life-saving' is a word deliberately used to refer to dire situations or when life itself is at peril because of a grievous sickness. It is in such situations that one can bank on insurance to save a life. Only in times of unforeseen contingencies one realizes the value of a savings insurance plan and regrets not investing in it earlier.

 

 

If you are uninsured, you are facing these 5 BIG risks

 

#1 Death Cannot Write off Debt

The death of an individual does not write off his debt. Instead, his survivors will have to repay the amount. This becomes more difficult if the death in the family is of an income providing member This will cause the debts to mount, and the deceased’s family will have no way of paying them off. They may, with great pain, have to face loss after loss and may need to give away their prized possessions to pay back the loans.

It is precisely for this reason that life insurance cover becomes a priority. After the death of a loved one, his/her family will not be burdened by the loans or mortgages, as the same will be covered by insurance.

#2 Provide for the Family in the Case of Untimely Death

Everyone looks for a savings plan that can provide for the family’s future. Suppose a person is insured and dies suddenly. In that case, his/her family is entitled to the insurance amount, which can be used to maintain the family’s financial situation.. If the deceased were uninsured and the family’s sole provider, his/her death will destroy his/her family financially. Also, as they will have to build up their lives again without the deceased or any help, that will burden the deceased’s spouse and children. It may also become the cause for children giving up education and dropping out of schools and colleges.

The death of a loved one can never be compensated, and the void caused by the absence can never be filled. But an amount against the life insurance premium paid by the deceased will support his/her family when he/she is no longer there to help.

#3 Medical Bankruptcy

In modern, times the rising cost of medical expenses makes paying medical bills without medical insurance cover impossible. When faced with a grave illness, people are no longer comfortable seeking treatment as they fear medical bills.

When one opts for medical insurance, he/she can guarantee¹ that the otherwise unaffordable medical treatment is now possible as insurance will cover these medical bills. One gets the best treatment without worrying about bills, making recuperation or caregiving easier.

#4 Compelled to Compromise with the Health of Loved Ones

Many times people refuse to go to hospitals or even take their loved ones for treatment, fearing the costs. That causes the health issue to aggravate, causing intense suffering. At times, people agree to seek treatment when the sickness surpasses tolerance levels, only to be told they have delayed treatment for a long time and the illness has reached an untreatable stage. Even if a person receives treatment, his/her mind remains focused on the bills, increasing stress and making healing difficult. In case of emergencies, borrowing money from other sources may be the only way, making it even more expensive as interest will be charged on loans. People usually opt for a less expensive treatment in such situations, which can be dangerous at times. This could result in death, leaving the grieving family with a massive debt on their shoulders. If a family member dies, you will be left with a financial burden and the guilt of not being able to save them.

#5 Increases Stress and Decreases the Joy of Living

An uninsured individual is aware that he/she will have to pay for any losses incurred from his/her pocket. This means he/she is skating on thin ice and must be extra cautious. Living like that can be taxing. In the case of a crisis, such people may feel lost.

However, people who invest in insurance know that insurance will cover specific contingencies. Thus, insured people can live their lives to the fullest without much worry. They also have the added advantage of having saved money via insurance. With the return of the premium feature of the life insurance policy, they can get the total amount and use it for their needs.

They are also aware of the amount that must be paid as a premium at the appropriate time and will keep the funds ready, encouraging the habit of saving.

Insurance may be conveniently purchased for a small price. It's your money-saving plan, and it is for your betterment and your family’s security. 

 

Conclusion

Now that you know the risks of being uninsured, what are you waiting for?

 

Tata AIA Life Insurance offers a range of life insurance products to provide for all kinds of insurance seekers:

 

1. Pure protection term plans that offer affordable life cover.
   

2. Savings solutions for the dual benefit of life cover and guaranteed¹ returns on investments.
   
   

3. Wealth solutions for life cover, along with market-linked investment returns.
   
   

4. Retirement solutions to make the later innings of your life financially secured.