Why you must have insurance
No one knows when a calamity may arise. Prevention is better than cure, so they say. But no one can prevent a calamity, right? It is important therefore that you protect your family and yourself for the uncertainty before they befall you. Financial planners will also agree with me that insurance is one of the important financial management tools. This article will show you the benefits of having an insurance policy.
It is a law
Many may not know, but to some countries, insurance is a compulsory undertaking for every citizen. Social security for workers is mandatory in most countries. Even though some may think that it is a move for the government to draw money from their citizens, in the long run, it is the individual who ends up gaining from it. Laws are made to safeguard the citizens, and as a law, this is a way of ensuring the citizens have a way of survival after their retirement.
It ensures continuity
Imagine a situation where your entire company sets on fire and everything is written off. If the business were insured, it would take only a matter of time before the business becomes stable again with the help of the insurance company. Insurance, therefore, gives people peace of mind. I mean, you are certain that in case a calamity befalls you; you can easily rise and continue with life as usual. What a relief!
The welfare and security of employees is guaranteed
Acquiring and gaining the trust of employees is not an easy task that one can never risk losing even a single one. The perfect way of preventing this is having your employees insured. If an employee falls sick, the insurance cover will take care of the hospital bill, and within no time, the employee will be back into the business. Amazing, right?
Speeds up country’s economic growth
Insurance protects properties from losses due to risk. This means the capital is maintained meaning the requirements for economic growth remains as it is. And who does not want its country to develop? The benefits of high economic growth are fruits that all citizens would wish to share, for instance, low inflation and reduced cost of living.
Insurance encourages people to save
The insured are expected to a certain amount premium at a regular interval of time and is only withdrawn after the agreed time of at the occurrence of a risk. To attract more interest, people get encouraged to save more to get more. The insured get to save till it becomes a habit especially once you realize the benefit of the same.
Increased efficiency of business
No one wants his capital to go to waste. Insurance ensures that business comes back to its feet after a calamity. To prevent any further occurrence, the business must work up to its potential to ensure the investment do not go to waste. The businesspersons are assured of getting compensation in case of damage. If the owner dies, there is a compensation assured, but of course, this will depend on whether they have been submitting something to the insurance company.