The role and importance of insurance

Insurance is a binding contract between an individual and a company and an insurance company to provide protection for uncertain property or life loss in the future. Provide insurance companies with a certain amount of funds called premiums as compensation for insurance policies that protect their customers during a crisis. Most people insure what they value; this includes their homes, health, motor vehicles and their lives.

It is recommended to seek insurance to minimize risks and prevent imaginary misfortune. Insurance serves the interests of individuals, groups of people, or companies that play multiple roles in each of these entities. Here is a detailed description of the role and importance of insurance.

Mortgage protection

The mortgaged property should be insured to prevent the death of the property owner. If the property owner dies, the money lender can take over the property and confiscate it for use by family members.

Provide security

Insurance provides protection for losses. If any death occurs, the insurance company will compensate the beneficiary, similar to premature death and old age. Property safety is provided for risks such as fire accidents or damage. This provides security for the owners.

Encourage savings

In terms of property saving, only protection elements are provided. Life insurance not only provides protection, it is also a form of investment. Policyholders make monthly deposits. If the policyholder cannot pay the required premiums within the grace period, he may lose his savings. Please remember that you cannot withdraw funds before the expiry of the policy. This is a good investment opportunity.

Credit enhancement

Individuals and companies can obtain loans by using insurance policies as collateral for loans. A person can get a loan to ensure payment when they die. Real estate is the best loan collateral.

Employee Benefits

Employers need to work in an environment where they feel safe. Employers are responsible for ensuring that all employees are fully protected in the event of an accident, injury or death within the company. They may put more energy into their work and perform their duties.

Economic Growth

Insurance companies provide economic growth for a county. The funds collected through monthly premiums are used to fund industrial development and create employment opportunities for citizens. It provides security for property and personnel and prevents property losses. Workers can work in a safe environment, thereby increasing production. It reduces the family's interdependence in life insurance, just in case.

Medical support

Medical insurance is essential for dealing with health risks. Recommended for patients with chronic diseases who need frequent medical treatment. Anyone can become a victim of unexpected diseases. With insurance, you don't have to worry about the bill because it is fully taken care of.

Business continuity

If the business partner dies or due to lack of funds, the business may stop. The insurance company guarantees a certain amount of interest for each partner when a member dies. They provide sufficient quantities so that companies can continue to operate even after losses. The property is protected from any disasters and disasters.