The importance of insurance cannot be underemphasized. We are exposed to varying degrees of risks when carrying out our daily activities. Risks are part of human existence, and we face an even greater risk, not taking those risks seriously and protecting ourselves and our possessions.
The basic concept of insurance is all about the provision of a financial safety net, which helps you take care of yourself and your loved ones. In a much broader perspective, insurance is the process of safeguarding the interest of people from loss and uncertainty. It may also be described as a social device to reduce or eliminate the risk of loss to life and property.
The following points show the roles and importance of insurance in our lives.
Financial Security – Insurance is essential to every family, as the family depends on the breadwinner for financial support. Insurance ensures that the people who matter most in your life are safe from any eventualities or financial hardship that might occur if the unexpected happens.
Stress Reduction – Insurance helps us plan for unexpected tragedies such as illness, injury, permanent disability, or even death can leave you and your family experiencing grief and emotional stress. With an adequate insurance policy in place, you or your family’s financial burden will be reduced to the barest minimum, and you can focus on recovering emotionally and rebuilding your lives.
Protection from the Unexpected – Whether accident or act of God, insurance provides protection for property and self. A fire or flood may destroy your home, but with the proper coverage you can rebuild.
Insurance provides you that peace of mind, knowing that if something happens to you tomorrow, your loved ones won’t have to suffer.