Insurance provides security to your family when you are not around. If something unfortunate happens to you then it will help your family to live peacefully without compromising with the living standards. Due to unfortunate death of the sole earner of the family the family can also repay loans or debts taken without delay. The education of your child can also be helped with the insurance in your absence as all the education cost can be covered up by the insurance.
Insurance provides financial support during any medical emergency. Health insurance helps you to cover the treatment cost of any illness or hospitalization. Accidents are also covered in insurance which helps us to fulfill the sudden demand of expenses in the hospital which becomes crucial sometimes.
If a person is doing a business and it has a chance to incur losses in present or in future this can be aided by insuring the business. If the business incurs loss then this losses can be easily recovered by the insurance amount. This kind of business insurance provides safety to the business as well as business owner. The losses cannot be completely paid by the insurance company but the insurance taken helps us to reduce and spread the risk between the business owner and the company so that the all the burden does not come on the shoulder of the owner. Thus it helps to spreads the risk
The premium amount paid by you periodically and regularly helps to develop a habit of saving a part of your income and this ultimately helps to develop a saving habit in you and your family. Premium amount acts as an investment and this ultimately gives you returns as an when required by you during any emergency situations or losses.
There are certain things that you leave behind foe your family like property, precious metals, cash etc. so that your family can live a comfortable life after you. Insurance also acts the same way. It is the security that your family gets if in case of natural or sudden death of a person who may be the sole earner of the family. Thus along with the other things such as property the insurance can also act as a legacy that could be transferred.
To promote the adoption of insurance among the population the government has started giving tax deduction on the various insurance policies like life insurance, health insurance etc. the premium paid by the person for any such policies is not taxable and along with this if you get the amount on sudden demise of a person that amount is also tax free under certain conditions. These are the steps taken by the government to promote insurance.
Almost everything around us can be insured like the house in which we live, the property we own, the vehicle we use, the gadgets we use, the business we own and operate, our health, the life we are gifted with and all these insurances gives us a kind of security and freedom to live our life stress free and this gives us a satisfaction and peace of mind and life.
The insurance also helps to promote the international trade, as when the commodities are exported the exporter is always worried about the loss and quality of goods, such things can be eliminated by insuring the goods and this helps free and soothing trade.
Adoption of insurance helps to promote the development of insurance companies. The amount paid by the insurer is used for the investment purpose and this helps in overall development and to create employment opportunities for skilled as well as unskilled individuals. Thus insurance not only secures you but also secures the development of the nation.