By RITA OBODOECHINA

The uncertainty in life is what makes insurance so important. Although we can never predict what will happen to us,  with the right insurance policies we can  recover from our financial losses. This is because  the insurance company will share the risk with us, to provide us enough security.

Before  things really  go wrong in our lives, especially in the areas of health,  and roof over our head, that’s when we  really  need  the foresight to take  insurance policy and keep it up to date.

We may have our life, body or property insured, the insurance company makes good our loses as we pay the insurance premium regularly, because when we are insured we have to pay premium.

Insurance is clearly of great advantage and importance, insurance, like banking, promotes savings; it helps to remove various types of fear from the mind of the people. For instance the insured is secured in the knowledge that the protection of the insurance fund allows you to transfer the financial risk of certain types of losses to another entity, usually an insurance company.

By transferring the financial risk to such an entity and paying the required premiums, you can receive compensation for loss in the form of either a lump sum or an annual amount of financial resources. This compensation can maintain or replace your income stream. In this way, insurance helps you and your family maintain financial stability if you get sick or become unable to work because of disability, injury, or death.

It creates confidence and eliminates worries which is difficult to evaluate, however, if you do not have insurance and you are sued, get sick, or even die, you and your family may suffer serious consequences, your family may have to rely on only one income or a reduced income to get by, and your children may not be able to achieve important goals in life.

Insurance as we all know, protect against dangers to life and property. If a person has got his life insured, his family will get enough money on his death. If he had an insurance policy for a shop, he can get compensation for fire, theft etc. He can get his goods insured while dispatching them by train, by truck, by air or by ship.

If you do not have insurance and you suffer great loss, it is likely that you will not be able to take care of your family as you should, you may be unable to work, and you may lose your earning capacity, you may lose everything you have ever saved, an insured person can get loans against the security of insurance policy from insurance company or from banks

Insurance is Important for health

Health is more important than anything; this means that we should insure our health first. Health insurance policy helps you face the unexpected medical expenses.

Life is precious

Since we cannot decide the birth and death of a person, it is better to join in our life insurance policy; this would support our family members. Some family would depend on the income of a person. Other than the head of a family, no other person would be employed in the family, and in such a case the family would face difficulties if the person dies or meet an accident. But if they get life insurance coverage, it would help them.

Insurance saves our property

If we did not have any property, we will not be recognised properly, and we will face difficulties when we buy a new house or construct a house. But with the help of property insurance, your insurance company will provide financial assistance to your house if it was affected by natural calamity, electronic machines, fire, theft or flood. In such cases, property insurance is very important as damage will be more.

Financial stability

Financial security is far from being stable in our times. It doesn’t matter how big our monthly budget is, or how many savings we have, there always are situations beyond our possibilities and we can never be completely secured. Insurance helps you and your family maintain financial stability if you get sick or become unable to work because of disability, injury, or death.

This is why we need to take all the safety measures we can to secure our financial state, and the best way to do so is insurance. Insurance is the best defensive tools.

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Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.