In its simplest form, insurance promises that if you ever suffer from a loss or peril, you will be financially reimbursed by an insurance carrier. Insurance revolves around the Principle of Indemnity which is to compensate or secure the policyholder in the same financial position prior to the event of a loss. In other words, the purpose of insurance is to help make the named insured financially whole again after a peril.
The problem arises when clients undermine the significance of insurance since insurance policies are an intangible product. Unlike a car, jewelry, or a house, you can’t physically see or hold the value of an insurance policy. The true value of insurance lies in the financial security and peace of mind that you obtain knowing that your property and well-being are protected after a catastrophic event.
WHY INSURANCE IS ESSENTIAL TO OUR SOCIETY?
- IT PROMOTES COMMERCE AND INVESTMENTS WITHIN OUR ECONOMY
Essentially the presence of insurance enables the mitigation of losses, and financial stability and promotes trade and commerce activities that result in sustainable economic growth and development
- INSURANCE IS COMPULSORY AND REQUIRED BY LAW
Insurance is required by law and is mandatory for both individuals and businesses. An example of this would be Auto Insurance or Workers’ Compensation Insurance. These insurance policies are designed to help protect accident victims against the costs of recovering from an accident that a driver or an employer has caused.
- PROVIDES FAMILY STABILITY
The well-being of a family is essential to everyone, and the health of family members and loved ones is the biggest concern for most. However, medical treatment and medicine prices are continually rising. This can prove to be enough to drain your savings if not well prepared. The reality is anyone can unexpectedly fall victim to critical illnesses (such as heart attack, stroke, cancer, etc.) Medical Insurance is a policy that protects individuals financially against various types of health risks. With a Health Insurance policy, an insured can also get financial support in case of a medical emergency.
- PEACE OF MIND
Insurance allows for a policyholder to transfer the risk of loss to insurance companies, so you can drive with peace of mind knowing that you’re covered should you ever get into an accident.
- INSURANCE IS THE RIGHT THING TO DO
Certainly, the list of the critical influence of insurance on modern society can be prolonged much further and we leave this as food for thought to you.
In any case, if you have a question or inquiry feel free to contact us at: https://www.insuranceideal.com.cy/contact
