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Writer's pictureNoriaki Nagayama

Importance of insurance

Updated: Oct 7, 2021

Uncertainties are a part of life and what can be better than the peace of mind in case of any difficulty/unforeseen situation that you and your loved ones are financially secure. These unforeseen situations include unfortunate death, medical emergency, accident, damage of your vehicle, or any property loss, etc. No one can bear the financial impact of these uncertain situations without burning a hole in their pockets. Insurance is the solution for proper coverage of uncertain financial situations where you can feel protected against all risks associated with your life, health, and property. What is Insurance and why is it important?

Insurance is a legal agreement/contract by the insurance company (insurer) and you (insured) in which you receive financial protection against losses from the company. The insurance company promises to make good the loss of the insured person when an insured emergency/situation occurs. There are different types of insurance policies available, from which the most common types of personal insurance policies are whole life insurance, auto insurance, health insurance, and homeowners insurance. The importance of insurance increases as you move through life because when you have a family to look after, you are more concerned about their financial safety. The most important insurance is your life insurance because you are the greatest asset to yourself and your loved ones. Benefits of Insurance If we talk about the benefits of Insurance, there are many, some of them are as follows:

  • If you have a health insurance plan, this can help you for paying your medical emergencies, hospitalization, contraction of any illness/treatment, and any type of medical care that you may require in the future.

  • A whole life insurance policy in place can cover the financial loss that occurred due to the unfortunate and sudden death of the single earner of a family.

  • Insurance is a convenient way to protect the future of your children in terms of their education expenses. They will be financially secured while continuing their education and pursuing their dreams without any compromise.

  • You will get peace of mind that will reduce your stress during difficult times and you will be more focused on recovery and rebuilding your life in case of an accidental situation.

Final Thoughts Insurance can do wonders as it manages risks and losses and moves it from the insured individual to the insurance company. The basic principle behind every insurance policy is to spread the risk among a large number of people involved in an insurance policy. Either you buy life insurance, health insurance, or vehicle insurance, you must ensure that you have done proper research and investigation about the services of your chosen insurance company.

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