of us may think we have enough money to replace our assets in the unlikely event that they disappear.
The problem is that the costs associated with an accident, disability or loss of a loved one can often exceed any savings or wealth we have accumulated. That is why insurance is very important in financial planning.Some of us may think we have enough money to replace our property if we lose it.
The problem is that the costs associated with an accident, disability or loss of a loved one can often exceed any savings or wealth we have accumulated.
That is why insurance is very important in financial planning.Buying insurance is actually a more cost-effective long-term decision than spending your hard-earned resources on expensive expenses like property loss or damage.Describe insurance.
Insurance is a method of risk transfer whereby responsibility for losses is transferred to experts called insurance companies.
These companies manage the risk by spreading it among several individuals or companies. You can reduce the cost of unexpected circumstances such as illness, theft or property damage by purchasing insurance. If you insure your property, the insurance company will fully compensate you for the lost property. You can also take out life insurance to protect your loved ones in the event of your death.
Why should I take out insurance?Insurance protects you against financial losses in the event of unexpected circumstances. Disasters and accidents happen, and if you’re not properly insured, they can bankrupt you.
When you buy insurance, you give the insurance company the financial burden of a potential loss in exchange for a payment known as a premium. Insurance companies put money into safe investments so it can grow and be used to settle claims as they arise. Your situation and stage of life will determine whether or not you decide to get insurance. Some cases of insurance coverage include:.