Insurance is a commonly used word in this generation and sometimes, people don’t understand the meaning or importance of insurance.
What is insurance?
This is simply a practice by which one party, possibly a company, guarantees a compensation for a specified loss, illness, damage or death. In return, the other party pays a premium.
Why choose Insurance?
Peace of Mind
Sometimes a peace of mind is enough to a guarantee a goods night’s rest despite the danger around. Insurance will give you a sense of safety and security. You will not have to be afraid of losing all your property for good.
Safety and Security
Insurance will provide safety against loss if the insured event occurs. An event is beyond our human control thus it is wise to consider what action you should take in case a harmful event occurs. Insurance will ensure that you will not have to start from scratch
Helps Pay expensive hospital bills
If you take insurance on your health, you will not have to worry about paying a big hospital bill because the insurance company will foot the bill while you pay the premium. It is sometimes difficult to pay a lump sum but quite easy to pay a premium.
If you take life insurance, you will be assured that you will be saving for the future because most of that money is given to you when you retire or given to your beneficiaries in case of death. You are therefore saving for a rainy day.
Types of insurance
This is where you insure your home against certain risks like fire or floods. Insurance will not cover for inevitable things such as wear and tear. Home insurance is very important, and this is the most popular cover taken
You can insure your car from theft or fire. It is also very important to insure the third party like passengers in case there is an accident involving your car. This type of insurance is mandatory in public service vehicles. You can also be jailed if you do not have insurance for your vehicle.
This covers you while you are traveling. There are a lot of risks while traveling like accidents and thieves. The insurance company will pay all medical expenses if you get into an accident while traveling. Most people take this cover if they are traveling with valuables.
This is covers you as a person. You may be given a large amount of money if you are diagnosed with a specified illness. This is a good cover to take because it ensures that those depending on you are well taken care of.