Insurance Benefits And The Basic Purpose Of Insurance

Many insurance companies have told us that there are so many reasons why a person should have insurance. Those who want to get insured against the loss because of risks will take certain insurance program then pay their premiums to the insurance company. Well, there are some benefits of insurance that become reasons whyt people take insurance.

Insurance Benefits And The Basic Purpose Of Insurance

Insurance Benefits and Reasons People Choose Insurance

All those who want to protect themselves or others against financial hardship should consider insurance. At least, here are some benefits of insurance provided by insurance companies;

  • Protect the family after the death of someone from the loss of revenue.
  • Ensuring the payment of debts after death.
  • Includes contingent liabilities.
  • Protects against the death of a key employee or person in your business.
  • Protect your business from business interruption and loss of income.
  • Protect yourself against unexpected health costs.
  • Protect your home against theft, fire, flood and other hazards
  • Protect yourself against lawsuits.
  • Protect yourself in case of disability.
  • Protect your car against theft or losses incurred because of the accident.

By the large benefits of insurance, then there is a large number of insured persons today. This is why the insurance company will also use statistical analysis to know what their actual losses in a particular class. They know that not all individuals (insurers) will suffer a loss at the same time or at all. Then, this allows insurance companies to operate profitably and at the same time they pay claims that may arise.

For example, most people have car insurance but few actually get into an accident. You pay for possible damages and for the protection. This is where insurance companies get profits from their insurance program. Then, at the same time you may be paid for losses in the event that you have an accident. This means, the company will pay claims to the client.

Leave a Reply

Your email address will not be published. Required fields are marked *