What are the benefits of insurance?

Insurance is a promise that should anything catastrophic happen to you, your family, or business, the insurer will provide financial support to sustain your family or the company. Put otherwise, insurance provides financial protection against events beyond your control, including loss of loved ones, accidents, or extreme weather that disrupt businesses and destroy homes.

We take a look at more reasons why insurance is a must-have in today’s uncertain times:

Insurance brings stability in the family and business

This mainly applies if you have a life insurance policy that protects your family or business in the event you pass away. Aside from taking care of the funeral expenses, most policies provide adequate financial support to your beneficiaries. This helps them to maintain the same standard of living as before and take care of other costs such as tuition fees and mortgage.

Similarly, insurance guarantees that your business will continue to thrive even after you are gone or lost a vital machine. This ensures that there’s no immediate loss of livelihood regardless of what the future holds.

Insurance eliminates dependency

As mentioned above, insurance is a promise of financial protection should an unforeseen event occur. This may include death or injury of the insured, massive destruction of property, fraud, etc.

When these risks occur, the dependents of the insured lose potentially irreplaceable support or their source of income. This is where a cover comes in handy to offer compensation and ensure the dependents can continue living comfortably without depending on other people or the government.

Insurance provides employment opportunities

The insurance industry is among the biggest employers, offering thousands of opportunities including insurance carriers, sales reps and agents, and brokerage firms.

Insurance also employs independent organizations that offer insurance-related services like risk management, loss prevention, and claims processing. Finally, insurance companies hire private claim adjusters to investigate claims for accidents or property damage and recommend appropriate estimates for the claims.

Insurance encourages savings

Aside from risks protection, insurance policies are excellent investment vehicles, too. Life insurance policies, for instance, add up as savings channels through the regular payment of premiums.

Here’s how: upon the maturity of a level term policy, the insured gets a lump sum amount. Equally, the cumulative death benefits are payable to the family of the insured who takes a whole of life policy.     

Insurance is a requirement for lenders

Most lenders today want a guarantee that you'll pay back the money they lend you in good time. For this, some will ask you to take out an insurance policy especially for business-related policies. This assures the lender that you'll still be able to pay back the money if the insured event damages the collateral for the loan.

Here's another way to think of this: the majority of mortgage lenders require proof of mortgage life insurance before they can agree to finance your new home or building. With this, they're confident about getting a full payback in case you pass away before repaying the mortgage entirely.

Insurance provides income security

Insurance policies like the pension plans offer great relief to the working population as the insured are assured of being able to meet their financial obligations when they retire. It also lifts the weight of supporting the old members of the society of the government’s shoulders.

Today, most insurance companies offer various expert-driven investment opportunities to policyholders. The most common insurance-based investments include mortgages, bonds, stock, and real estate. The carriers keep such investments in an entirely distinct portfolio, and the returns are passed directly to the insured.

Insurance reduces the social burden

Picture this; a coach is involved in a grisly accident that results in many people injured or lost lives. The question is, who compensates the victims? How about the funeral costs plus unpaid debts and expenses left behind by those who succumb?

Insurance is the solution to such social uncertainties. It funds the treatment of the accident victims, funeral services, payment of school fees, upkeep of the remaining families, legal fees, and so on. Without insurance, society is likely to be overwhelmed by such costs, especially in the event of losses of family breadwinners.

Conclusion

It’s a shame that many people and business owners still don't seem to understand the importance of taking out insurance, especially in this uncertain and risky world of today. One of the most effective ways to protect your loved ones and businesses is to buy an appropriate policy.

Not sure where to find the best insurance provider that will have your best interests at heart? We highly recommend you check out Caspian Insurance, one of UK’s leading insurance brokers. Consult them now to identify the perfect and most affordable policy for your current situation.