We always wants to secure our lives by earning money, because money gives us power to purchase goods and services. In good time we never think about financial loss. Financial loss may occur any time without giving us notice of specific time period. Financial loss is uncertain. So we should prepare themselves for uncertainties of loss. There are uncertainty of both time and amount of loss. Uncertainty of loss is minimised when we do better management of money. In present uncertain world we should invest some amount of money in Insurance policies. Insurance policies gives us protection against risk. Risk is uncertainties of financial loss. Insurance provides certainty of payment during uncertainty of loss.
Uses for an Individual
1.Insurance provides safety and security – It provides safety and security against loss which occur on a particular event such as loss of earning at death or in old age, against loss at fire, against loss at damage, destruction of disappearance of property, goods, furniture and machines etc or when the term of insurance is expired.
2.Insurance afford peace of mind – In this uncertain world where anything happen any time such as fire, auto mobile accident, damage and death which are not within the control of human beings. So, in the above condition, Insurance provides them protection by taking risk and in turn gives individual peace of mind.
3.Insurance protects mortgaged property – When someone take loan by giving their property to the lender of money then their family deprived from uses of that property. In order to secure themselves and their family one should must insured their property. So that, at the time of uncertain damage or destruction of property or even early death of property owner, insurance company repay that unpaid loan amount and then mortgagee will be benefited.
4.Insurance eliminates dependency – At uncertain death of head of family, family members suffers lots. No one can minimise their pain or fulfil that person’s responsibility towards their family. But money will give them some relief.
So, one should take insurance policy. So, during critical time insurance company help a family a lot by giving money to them irrespective of their premium deposited and also minimise dependency.
5. Life Insurance encourage saving – life insurance is the only type of insurance which gives both protection and savings.
6.In India insurance policies carry a special exemption from income tax, wealth tax, gift tax and estate duty. So, insurance provides profitable investment.
7.Insurance also fulfil special needs of an individual like education and marriage of a child or even a individual can also take insurance policy for their marriage. In both situation, insurance give money according to their irrespective premium deposited.
So in my opinion one should take insurance policy to live a life without any tension. Insurance is the only device which gives us protection against uncertain financial losses.