Why do we need Insurance?

<p>Insurance has numerous benefits for the policy holder. Some of the major benefits of insurance include the following:</p><ul><li><strong>Financial Security During Medical Emergencies: </strong>Although an individual may have enough savings, medical treatments for his/her family may go beyond the available financial assets. Medical bills for surgeries, heart attacks, and cancer are extremely expensive and can put a major dent in the bank statements. Insurance helps in covering such losses and prepares the insured financially for the future.&nbsp;</li><li><strong>Secures Businesses: </strong>Business owners need coverage for liability claims and property damage. Otherwise, their companies may not be able to function after covering for a loss. This applies to all businesses - small, medium and large. In general, small business owners have greater risks when they do not have an insurance plan. Any damage to his/her company without it must be paid for, from his/her expenses.&nbsp;</li><li><strong>Income Tax Benefits: </strong>Purchasing insurance can reduce the&nbsp;&lt;a href="https://www.shiksha.com/online-courses/articles/income-tax-and-its-calculation/?utm_source=so-blog&amp;utm_medium=content" target="_blank" rel="noopener"&gt;income tax&lt;/a&gt; payable. Section 80C of the Income Tax Act maintains that&nbsp;</li></ul><ol><li><strong>Section 80C:</strong> The premium amount one pays for life insurance gets a deduction of up to INR 1.5 Lacs from the taxable income.</li><li><strong>Section 80D: </strong>The premium paid for health insurance policies is tax-deductible under Section 80D of the Income Tax Act 1961.</li><li><strong>Section 10 (10D): </strong>Life insurance benefits that the policyholder or the nominee receives are tax-exempted under this section.</li></ol><p><em><strong>You can claim the tax benefits while &lt;a href="https://www.shiksha.com/online-courses/articles/the-need-and-process-to-file-the-itr/" target="_blank" rel="noopener"&gt;filing the ITR&lt;/a&gt;.</strong></em></p><p><em><strong>Learn about</strong></em><em><strong>&nbsp;&lt;a href="https://www.shiksha.com/online-courses/articles/types-of-assessment-in-income-tax/?utm_source=so-blog&amp;utm_medium=content" target="_blank" rel="noopener"&gt;types of tax assessment in Income Tax&lt;/a&gt;</strong></em></p>

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