Why Insurance Needed?
Insurance that is sold by most of the companies these days is a form or risk management against the various risks that an individual or a business might be subjected to. Insurance companies continue to exist and make profit based upon one sole motive that is, the uncertainty of life and other aspects that we are looking out for. An insurance business is based upon the probability of risk to an individual or a businesses? life span. The risks are of varied nature. Hence, quite obviously do we see the existence of various kinds of insurance policies that derive protection at different levels and provide protection to those assets in our life against insurance. In the guide that is to follow, we are going to see the lines on which there is a need of insurance and the importance of insurance.
As individuals or businesses, we tend to earn a lot of assets throughout the life span. These assets come from the amount of money which is more or less hard earned due to the difficulty that we subject ourselves to when we earn money. These assets have truly been our dreams for such a long time in our lives and hence need to be properly guided and ensured protection against the same. We need protection to these assets against the various threats that can be occurred to the lives of these assets. For example, consider insurance towards the home that we live in against threats like fire, floods, tsunamis etc. It is a worthy of a point to be noted that the risks that tend to threaten our assets are of a nature such that they are unexpected in their outcomes and hence it becomes unpredictable of their nature as to how much extent and when shall be the damage to the assets that we tend to cherish can be caused.
Liquidity investment and growth
Any form of insurance that exists in the market can be viewed upon by the individuals and the businesses as a form of investment that is subject to the protection of our assets as well as the amount of growth that is there pertaining to the liquidity of our assets. For example, when you insure yourself against your life, it is to be seen as an investment that you are making for yourself and your family. This is because if something happens to the policy owner, then the dependants of the policy owner who exist in jeopardy can avail themselves of the insurance benefits that was covered in the policy that the policy owner had subscribed. If seen from a point of view, insurance is much more beneficial than the savings that you make. This is because, if you cause yourself an unforeseen, unfortunate and a nasty accident, then your life is in fatal situation. If you had insurance at the time when and if you die at the young age, the amount that you had paid through the monthly or annual premiums is much less as compared to the amount of the insurance that your family is supposed to get as compensation to your death.
In most of the countries, it is abiding by law that most of the citizens of that country are mandatory to have an insurance policy against their health. This is because, day by day, due to the advancement of technology, the medical facilities have improved to a great extent and are liable to great amount of fees to be paid. Since it is unaffordable for you to pay such high amount of fees for your medical bills, your medical insurance can always come to the rescue.
During travel, many unwanted incidents can happen owing to cancellation of trip, medical emergencies, loss of baggage etc. for which you might opt to get insurance against. Also, when opting for travel insurance it is necessary to do so wisely.
Insurance and business
The business world is the most uncertain world. There is no telling as to when shall you be facing a major loss and hence crisis in your business. It takes only a matter of days to hours for a business to doom. Obviously, the insurance companies have come with business insurance to protect your business. Business insurance is frequently availed for a variety of reasons by all categories and scales of businesses. The various forms of business insurances are general insurance, insurance against liability, insurance of an office against fire disasters etc. Business insurance premiums are generally high owing to the certainty in the risk that a business? life is subjected to. It also depends upon the feasibility of damage caused to the business.
Thus, in this guide, we have seen the various needs of insurance.
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