How Much Should We Pay For Insurance?

While choosing the right policy, the proverb - cut your coat according to your cloth - closely connects to it. However, due to lack of awareness, insurance penetration has always remained low, most of us confusing it as a tax benefit instrument. According to Insurance Regulatory Development Authority of India (IRDAI) annual report 2017-18, the overall insurance penetration in 2017 was 3.69 per cent. And, the highest insurance penetration of 5.20 per cent was recorded in 2009. Sasikumar Adidamu, Chief Technical Officer, Bajaj Allianz General Insurance, said, “Mostly people feel that insurance is a dead investment with no return value. This attitude needs to change. It is important to properly research  about the various insurance plans available.” Apart from providing an extra layer of protection, insurance also eases the financial hardships during rainy days. However,...