Not all fully understand the importance of having insurance nor they are comfortable trusting the promise of an intangible product. Some viewed insurance as an expense rather than an investment, others would call it a pre-need plan which is essentially the act of investing or putting aside a certain amount of your money to prepare for a future yet unseen needs because of a variety of risks like tragedies, accidents, among others.
Insurance is basically a tool to reduce a particular loss brought about by these risks. We, humans and our properties are constantly exposed to them. With risks come the losses. Insurance is one strategic way of accumulating funds to protect us from the loss by compensating what was lost.
Risk coverage is the major benefit of an insurance policy. Education, marriage, retirement can be all covered. For instance, the thought of actually losing an earning member or the breadwinner of the family can have a great impact on one’s family life, but with an insurance plan, the impact may not be that hard. As they say, if you want to enjoy life, plan ahead. Insurance is staying true to that plan so get yourself, your family and your properties insured.
Other benefits of insurance:
Security:- The so-called Life insurance provides security against a tragedy or death. Fire insurance against loss because of fire. There is Marine insurance providing safety and protection against loss of ship and cargo. There are other Insurances for accidents or sickness when you do not have the ability to earn any more.
Peace of mind:- There is always that peace of mind when you and your family are protected by an Insurance Plan. It takes away the fear and anxiety and other emotional conditions because of a certain loss. It makes sense to live life to the fullest, knowing your future is assured.
Reduces business risk or losses:- If you have a business, better protect your trade, properties, and other assets. There are circumstances beyond your control that by single neglect, all your hard-earned money might possibly turn into ashes. Insurance can help assure your earnings for your dependents and beneficiaries since the insurance provider will pay a fixed amount at the time of death, theft, accident, damaged by fire, and other threats.
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Other importance and benefits of insurance may include:
- Encourages saving habits by paying your premium on a regular e basis and in due time, would be a critical saving for the insured person.
- Hastens Economic growth because insurance protects loss of properties so the capital is accumulated from the insured and eventually being utilized by the country for its development and it also reduces the impact of inflation which is good to the country.
- One uncommon benefit of insurance is that it lessens legal impediments. Insurance usually meets statutory requirements and provides evidence of financial resources.