Insurance is an agreement between the company and individual. In which company provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium. Insurance provide a security or financial protection for any future possible loss.
So, there are various type of insurance: health insurance, vehicle insurance, life insurance and it may be for any business assets and property. Paying a little for insurance now may save you a lot in the long run.
In this way insurance help to predict a security of financial protection for any type of future loss.
Now I am going to discuss How insurance is helpful to predict the future:
- Manage the risks
- Protection of high value things
- Predict family future
- An unexpected illness
- Disability insurance
- Reduce social burden
- Source of investment funds
- Protect a business
- Mental relief
1. Manage the risks
We can’t stop any future happening that might cause injury or financial loss. But we can manage the financial risks of something going wrong. It means if something goes wrong, you have not to raid your savings and investments, borrow money, ask family or friends for financial help or sell your any property or make any debt. It manage all personal risks, property risks and liability risks.
2. Protection of high value things
Insurance help to protect any high cost thing that we have purchased. It may be a house, jewellery, any assets or a painting. Any damage to these high cost things, make us panic, often people lakes loans to purchase these items. But insurance provide a recovery for a such loss. Insurance is when the cost of a particular financial risks is much greater than the cost of protecting yourself against that risks.
Any disaster such as fire, flood, cyclone, earthquakes or other calamity can destroy everything in no time. Insurance is there to protect property or any possessions against these disasters and provide a future relief.
4. Predict family future
Life insurance provide a peace of mind that your family will have some financial protection upon your passing. The death benefit provide a assistance with things like mortgage payments, care of disabled ones and basic needs and child care. If you have a life insurance, your family will be safe after you, will having a financial support.
5. An unexpected illness
Even if you are in a good health, an unexpected illness or injury could empty your pockets or all savings, if you don’t have health insurance. You may require any unexpected surgery or other emergency care, which could be thousands of rupees. While health insurance pays for your hospitalization and medical bills. The costs of being uninsured may be much greater than in the long run.
6. Disability insurance
Disability insurance is a type of insurance that will provide income in the event a worker is unable to perform their work and earn money due to disability. There are many types of organisation that provide different type of disability insurance. Disabled worker may be a sole earner to their family. In this condition disability insurance is not less than a bless, that gives a financial support to the worker and his family.
7. Reduce social burden
Benefit of insurance is reducing social burden. Insurance helps reduce the burden of uncompensated accident victims and the uncertainty of society.
8. Source of investment funds
Insurance provide a source of investment funds. Insurance companies collect premiums up front and invest those premiums in a variety of investment vehicles and pay claims if they occur. In this way it is a source of investment funds.
9. Protect a business
Insurance reduce your business exposure to the effect of particular risks, such as: damage or loss to any physical assets, premises or equipment. Death and illness of key member staff.
10. Mental relief
At last, insurance not only gives you a financial support, it also gives you a peace of mind and mental relief. You become little tension free, that we will have a support of insurance, in case of any future loss or damage and you will not suffer too much.
In this way insurance helps to predict the future by helping you in every aspect of life and at every stage. If you have a proper insurance policy, you will not have to worry about any future damage or loss.
Now after knowing such benefits of insurance, you also want to join such policies. But before you join any of them, study them in detail & also take suggestion from expert that what type policy you actually need, which one will be more benefit to you, what is the policy and its terms to gain high from it.