Top 10 Reasons to be Insured In 2017

Posted by on Jan 21, 2017 in Uncategorized | 0 comments

Top 10 Reasons to be Insured In 2017
Applying for an insurance policy is like buying a promise. It is a promise that if something bad happens to you or your business, the company will help bring things back to normal. Since people and businesses are exposed to risks that involve losses, insurance is gaining popularity every day. But what is the specific importance of insurance?

Security

Insurance provides security against possible losses. Health insurance covers any possible financial loss following an illness. Life insurance secures your loved one against possible financial instability after you die. Fire insurance protects against losses caused by fire. Personal accident insurance provides security against financial loss after an accident.

Peace of Mind

There is nothing rewarding than having all possible threats to life in check. Even if the threats occur, insurance removes tensions, frustrations and anxieties you might develop. With an insurance policy, you are sure you will bounce back from the unfortunate event.

Saving

Insurance encourages saving. Once you buy a policy, you have an obligation to continue paying the premiums for a certain duration. You cannot withdraw the amount before the duration set matures. This is a good way to encourage saving among people, especially the young generation.

Credit Facilities

An insurance policy can be used as a form of collateral for a credit facility. Most creditors use insurances designed as saving schemes because they are sure that they will get their money after the policy matures. However, the interest rate of the loan should not exceed the amount paid in premiums.

Business Stability

Insurance is a crucial factor that determines the stability of the business. Business owners are sure that they will remain stable after a catastrophic event as long as they have the right insurance policy. It makes them whole again whenever something goes wrong.

Employee Security and Welfare

Insurance enhances the welfare and security of employees. Small and large companies insure their employees against risks associated with the business operations. Companies can meet the security requirements and welfare of employees by allowing them to have life, accident and health insurances. The company deducts the premiums from the employee wages after every month and forwards the proceeds to the insurance companies for records.

Inflation

Insurance plays a crucial role in reducing inflation. Inflation can occur as a result of an oversupply of money in the economy. Through insurance policies, people remit money to the company. This removes the money from circulation and controls its supply. Insurance also provide enough resources to increase production in the economy.

International Trade

Insurance promotes international trade. Foreign companies can insure their goods against transportation risks and theft at the port. This way, they can continue to be in business with other countries without fear of the possible risks. People also use credit insurance to promote international trade. Companies use the insurance premiums as collateral for big loans in foreign banks.

Economic Growth

Insurance promotes the economic development of a particular country. For a long time, wealthy people have used insurance to preserve their wealth. Insurance also protects against loss of property and capital in a business. Business can resume their normal operations after a disaster since they have insurance. The country’s economy not only stabilizes but grows because business can continue their operations despite the existing risks.

Employment Opportunities

The insurance industry employs thousands of people from all walks of life. People in insurance work as actuarial experts, cashiers, financial analysts and sales agents. The industry is currently growing at a positive rate and is expected to employ more people in future.

The benefits discussed above show how insurance can make a difference in people’s lives and the economy at large. In case you have not applied for an insurance policy, you are missing an opportunity to enjoy the benefits of insurance and be part of the economic champions in the country.