Do We Really Need Insurance? Let’s Break It Down Simply

 By WealthCare Vest – Caring for your wealth, strengthening your investment

📅 Published on June 15, 2025
🔗 Explore all insights

Do We Really Need Insurance? Let’s Break It Down Simply

What is Insurance, Really?

Let’s be real. Many of us wonder –
"Why is everyone, especially finance influencers, always talking about insurance?"
"Is it really necessary, or just another financial product being sold to us?"

The truth is: Insurance is not a product. It is a service — a financial safety net.

Let’s break this down in the simplest way possible.

Understanding the Concept

The word “insurance” is made up of two parts:

  • Insure = to protect

  • Ance = action

So, insurance means the act of protecting.
But protecting from what?

From unexpected events that can cause:

  • Financial loss

  • Medical burden

  • Property damage

  • Loss of income

Real-Life Example – Why Insurance Matters

🚗 Example 1: Car Accident

Rohit owns a car worth ₹7 lakhs. He didn’t buy motor insurance. One rainy day, the car skids and gets severely damaged. The repair cost is ₹2.5 lakhs – which he has to pay from his own pocket.

If he had insurance? He would’ve paid just the claim deductible (say ₹5,000) and the rest would’ve been covered.

🏥 Example 2: Hospital Emergency

Priya, age 32, never felt the need for health insurance. Suddenly, she’s hospitalized due to appendicitis. The total bill = ₹1.2 lakhs.

With health insurance? Covered.
Without health insurance? Financial stress.

✅ So, Do You Really Need Insurance?

Let’s answer it straight.

✅ If you have abundant money, you can take the risk of managing losses on your own.
❌ But if you are like most individuals, working hard to save every rupee, then insurance is not optional – it’s essential.

Types of Insurance Everyone Should Know

Insurance TypeWhy It’s Important
    Health Insurance                Covers medical emergencies and hospital bills
    Term Life InsuranceFinancial protection for your family in your absence
    Motor InsuranceMandatory by law; protects from car/bike damages
    Personal AccidentCovers permanent disability or death due to accidents
    Home InsuranceProtects against fire, theft, floods, etc.

Why People Avoid Insurance (And Why That’s Risky)

  • "I’m healthy, nothing will happen"

  • "It’s a waste of money"

  • "I don’t trust insurance companies"

But life is uncertain. Insurance doesn’t prevent risks – it protects your finances if risks happen.

WealthCare Vest's Take – Our Honest Advice

At WealthCare Vest, we believe:

"Insurance is not a tool to grow wealth. It is a shield to protect your wealth."

You don’t need to over-insure yourself.
Just cover basic risks that can derail your finances.

🔁 Recommended Reads (Internal Links)

Boost your financial knowledge with these helpful reads from WealthCare Vest:

🔹 Direct Plan or Regular Plan – Which One Is Better?
🔹 Monthly ₹10,000 SIP – What Returns Can You Expect?
🔹 RBI Cuts Repo Rate – What It Means for You
🔹 What is Insurance? A Simple Guide for Everyone

✅ Final Thought – Insurance is a Service, Not a Product

It's not compulsory to buy insurance.
But just like a seatbelt in a car – it’s not always needed… until it is.

💬 Got questions about which insurance is right for you?

Reach out to us at WealthCare Vest – we’re here to guide you.

🔐 Disclaimer

This blog is for informational purposes only. It is not a solicitation to buy or sell insurance. Please consult a certified financial advisor or insurance expert before making any financial decisions. WealthCare Vest by Raghav is not liable for any outcomes based on this article

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