What are the role and importance of insurance in human life? This is an important question for us to answer, as we face more complex challenges around health care issues. So when he started talking about this topic at Harvard University several years ago, which is always fascinating because before then someone would have said no way these ideas will ever get anywhere unless Marxists take over everything!
I can tell you that most individuals who decide to get a policy on their own do so at great risk, as compared with those employed by employer-sponsored health care plans.
Through my teaching I am inspired by the human experience to share the importance of gratitude, compassion, trust, and respect for the power of the mind and body. I am a teacher who works with people of all ages, from beginners to advanced practitioners.
I am passionate about teaching the art of insurance and its benefits, and I am open to exploring new ways to get benefits from insurance in a sustainable and environmental-friendly our human life.
230 Magnificiant Lines for importance of Insurance in Human Life
Insurance is a contract done by any policy company.
Insurance provides financial supports, and it will also help people to reduce stress.
It reduces uncertainties in human life and the business sector.
It provides financial protection individually from losses.
Insurance plays an important role in the sustainable growth of the economic sector.
Insurance provides a mode of investment.
It develops a habit in human life of saving money by paying the insurance premium.
Medical insurance provides support to the family during medical emergencies.
It minimizes the risk in human life.
It reduces the stress during any losses in human life and the business sector.
Insurance claim half or full of your losses.
Person who provides insurance is insurers.
Insurers are safeguarding the financial stability of households and firm by insuring their risks.
The person who buys insurance is insured or policyholder.
Insurers promised to cover the uncertain loss.
It provides mortgages in the event of the insured person death to the family members.
It pays all the expenses during the person’s illness like bills, cost of medicines.
IImportance of insurance in human life
You don’t have to worry about the expenses of the funeral.
Everybody gets health problem in life once so that insurance can be beneficial in those conditions.
You can buy insurance for any things, but it should be the financial term.
You can have car insurance.
Car insurance bear all the uncertainty of your car losses like an accident, fire, lost etc.
You can have your house insured to bear the losses of your house.
Insurance claim the losses of your house from fire, break down, Natural uncertainty.
Insurance provides your paid premium later with a high amount.
You can do the insurance of your Laptops, Mobiles.
If you have your laptop’s insurance, you will be fearless from losing it.
Insurance increase funds by collecting the premium.
These funds are invested in government securities and stock.
It provides the investment channel too.
Insurance increases the significant impact on the economy by utilizing domestic savings.
Insurance turn capital into productive investments.
Insurance enables to mitigate loss, financial stability and increase trade.
It increases commerce activity which leads the economic growth and development.
The insured gets medical help in the case of the medical policy.
The main principle of insurance is to spread the risk among a large number of people.
A large number of people get an insurance policy and pay the premium to the insurers.
Whenever a loss occurs, it provides the money from the fund to the insured.
Insurance is the primary source of capital formation.
Fund collected from the insured person are invested in economic growth.
Insurance leads to an increase in employment.
It reduces the risk of international business.
It reduces the risk while transferring goods from one country to another country.
In the absence of insurance, the traders will always worry about the safe arrival of goods.
The person who is involved in the business always have insurance of all things.
Like who is involved in international trade always have the insurance of vehicle, company.
All the shopkeepers have the insurance of his shop to be safe.
All the shopkeepers are out of worry because of the insurance.
Insurance claim the money to the shopkeepers in the fire, Lost of things, or stolen.
The exact meaning of insurance in the context of the business sector can’t be defined.
There are thousands of definition by thousands of people.
In reality, insurance is the subject matters relating from person to person and man to man.
One needs insurance in life.
Others needs insurance of the property.
Someone else for risk of the business.
A very rich person may like the insurance of his property and wealth.
an ordinary person always tries to keep his small earning secured.
The exact meaning comes to ensure the security of what a person thinks is very important.
In the present date, insurance means the financial protection against losses arising out of the happening of an uncertain event.
To protect from such losses, one has to bear some financial burden also.
The amount of insurance is depended upon the amount of expected loss.
The insurance facilitates reimbursement during crises.
It compensates for any potential of future losses.
From the above point, we can say that seeking the insurance cover is to transfer the risk from oneself to the insurance company.
Insurance can also be called the risk management tool for an unfortunate event like death, accident, disability, sickness, and retirement.
Valuation of the risk is determined by the predefined terms and condition of the insurance policies.
Insurance provides the facility of financial help in the case of contingency.
It depends on the value of insurance for which payment is made in the case of contingency.
Insurance is a policy regulated under laws.
The amount of insurance can neither be paid as gambling nor as a charity.
You can have credit insurance.
Credit insurance means ensuring the payment of commercial debts.
It is done for the non-payment by the borrower because of his insolvency for some other reasons.
You can also have group insurance.
Group insurance means insurance obtained by a person as a member of a group.
This is because there is an administrative saving for the company.
Sometimes, also because a particular group has a better life expectancy than people in general.
There is also marine insurance.
This insurance is done between the owner of the ship and the underwriters.
It is done against losses from specific perils or sea risk to which their ship or cargo may be exposed.
In the case of marine insurance, another type of insurance is done called mutual insurance.
The liabilities of the mutual insurance company are periodically divided amongst the subscribers.
There is also the facility of the fire insurance.
It a contact in which an insurance company undertakes to make the good any damage or loss by fire to building or property during a specific time.
Among the numbers of worries, the main and very important is his or his family’s economic uncertainty.
Everybody who is earning thinks whether his present-day earning capacity will last for long or not.
Perhaps there remains a fear that it may not last for long.
In this situation, everyone thinks about to secure his future.
under the impression of securing the future, one thinks about the habit of saving and investment.
Own not only think about himself but also about the family.
In the case of any miss happening to a family member, everyone is worried about what shall happen to his family.
Everyone knows that there is no substitute in the case of the death of an earning member.
No compensation can fulfil the gap in case of the death of the earning members.
To support economically up to some extent, the method is adopted known as insurance.
Life insurance in such case provides some solution to the worries of family.
Once upon a time, it wasn’t easy to convince people to get an insurance cover.
Today, it has become the needs of the day.
Today, life insurance does not cover the risk of life only but also provides many benefits.
Insurance helps own to have peace when life’s unexpected event happen.
In the case of non-life insurance, also there is full of uncertainties.
Other than life, many sectors create many worries in everyone’s life.
After purchasing life insurance policies, no one is absolved of the real worries of life.
There remain several sectors to worry about.
Every field needs some security cover.
To ensure such protection, one is not able to apprehend future unfortunate happenings.
Therefore it becomes very important to get insured for visual events one can foresee.
You never know what is going to happen, which is the main reason for having insurance.
If you are insured, and someone breaks into your house and steal something, you get it replaced.
If you break your hip, you get it replaced etc.
This is the method by which insurance work.
Nobody trust nature.
Suddenly an earthquake comes, and breakdown the building and this is a considerable loss.
This is also why insurance is very important.
You can’t trust the people.
When you are driving, and someone hit your car from the back, and your car gets damaged, insurance also claims it.
Insurance is not as expensive as you might think.
Insurance plans can seem expensive, but there is always a way to save the amount.
You can felt the need for insurance when you have to bear the loss from your pocket.
When you can’t bear the losses from your pocket insurance, come to the rescue.
You purchased the insurance because you know that you will be unable to bear all the losses on your own when you bear the loss.
Like your house caught fire and got damaged, then you might come on the street.
In that case, insurance will protect you from being homeless.
Payment to the insured person in the case of loss as per the agreement and terms of policy purchased by the insured.
Insurance is a simple contract done in good faith.
It is a contract for mutual benefits.
An insurance contract provides benefits to both the insurers and the insured.
Other contracts are based on the present-day situation.
The insurance contract is based on future losses.
The insurance concept is based on pooling funds by many and distributing among a few for their losses.
Insurance is nothing other than a group of people feeling a similar kind of risk come together and decide to contribute to the formation of the fund.
That fund is used in the case of crises arisen out of uncertain happenings.
The contribution made by the insured person is called premiums.
An agreement of cover is added in a policy that determines the conditions under which insurers agrees to assure contemplation of the payment.
When we talked about insurance, we think that when we purchase insurance, we are safe, but this is a wrong concept.
Every insurance policy is based on the agreement made between the insurers and the insured.
You can’t expect more than you have insured yourself.
it is very important to note that the function 0f the insurance remained confined to the terms and conditions of different insurance policies.
There are specific terms that apply to every kind of insurance, including life insurance and general insurance like home, automobile, jewellers, property and other valuable assets.
The function of insurance can’t be explained because of its diversity.
To understand, we can classify the function of the insurance in primary, secondary and other function.
The main primary function of the insurance is protection, collective risk, assessment of risk and certainty.
The secondary function of the insurance is the prevention of losses,Covering larger risk with the small capital and help in the development of larger industries
The other function of insurance is: insurance is a tool used for saving and investment.
The other function is that it is also one of the sources of foreign exchange.
Other very important function of insurance it risk-free trade.
And last other function of insurance is subrogation.
When things go messy, insurance help to solve the damage and take out losses.
It transfers the risk of a more significant loss to the small one and minimizes it in various ways.
Losses can be shared by a lot of the company members when it happens to an individual, and it will do out by its company.
There are two types of insurance life insurance and general insurance to help people through the worst conditions.
Insurance guarantees the losses of anyone who insure their property and other materials.
If we meet an accident suddenly near to us or our things, then insurance will help us to get over those loses in no time.
The bond between an insurance company and an insurance individual is excellent, helping them when they need them the most.
There is also a police bond between both parties and a specific agreement to claim the money and give it according to the situation.
The risk will be a shift towards the company if anyone has insurance on their property, so it’s profitable for the owner.
The risk of a private person goes towards the insurance company after they insurance the item.
Fear will be reducing from individual to get lost or happing something worst to their things.
The tension of getting lost over thinking of damage will also be gone from one who does insurance.
Whatever is lost of the people goods will be paid by the insurance company, but it has its way to do it.
When someone reaches the maximum age, they may get a tiny amount as a pension from the insurance company.
This type of pension money will be given to the policyholder, and it is one of the best ways to invest.
Only if goods were damaged by any natural causes or nature is responsible for the loss than insurance company may not pay that.
Insured will provide all the information and pros of insurance to the person who wants to do insurance, and it is straightforward to understand.
The insurance company will highlight all the essential part of its contract between agreements.
The insurance company will repayment all the cash to the owner of loss goods, and it is a straightforward process as well.
Insurance is a great helping hand for us, which minimum the loss of anything related to money.
It helps to decrease the risk of loss but never eliminates the loss of goods we need to consider.
People will not lose their hope in the time of loss, and it will act as medicine for people in that bad situation.
It will help people give new hope of ray to develop the business again and manage life perfectly.
Insurance plays a vital role in developing people’s emotional and mental situation in a tough time.
People will do their work in a new and good mood and without fear to take their business to the next level with insurance.
Insurance will add little happiness to once life and make them feel safe when complex situation and condition.
Insurance companies are considered as one of the most incredible friends of people who are there. Even everything turns their head around.
The insurance company will give sympathy to us when we are weeping around after a huge loss.
It is a suitable method of increasing the risk of loss and goods.
With the help of insurance, it will be easy to open an international business where risk may be high, but insurance will be backup.
Insurance is also being one of the most significant sources of employment amount youth in various countries.
Insurance may be the strongest shield or protection against all the damage and loss of goods and items.
One of the magical supportive backbones for the financial sector of life and business.
People have good faith in insurance companies and with the faith come strong determination of doing great things.
During the determination of premiums and premiums rate structure, insurers consider quantifiable factors, including location, credit score, gender, marital status, occupation and level of education.
Policies of insurance can be more complex, and some policyholders may not understand all the fees and coverage included in a policy.
The financial stability and strength of an insurance company should be major factors when buying an insurance contract.
There are numbers of depending on rating agencies that provide information and rate the financial viability of insurance companies.
They also rate financial instruments by the insurance company, such as bonds, notes and securitization products.
Neither insurance consultants nor insurance brokers are insurance companies, and no risks are transferred to them in insurance financial transactions.
Captive insurance companies can be defined as limited-purpose insurance companies established with the specific objective of financing risk emanating from their parent group or groups.
The types of risk that captive can underwrite for their parents include property damage, employee benefit, public, professional indemnity, public and products liability, motor and medical aid expenses.
Captives are increasing and becoming important components of the risk management and risk financing strategy of their parents.
Insurance companies that sell life insurance, annuities and pensions products and bear similarities to assets management businesses.
They are self-funded cooperatives, operating as carriers of coverage for most government entities today such as country government, municipalities and school districts.
The risk presented by any given person is assumed collectively by the community members who all bear the cost of rebuilding lost property and supporting people whose needs are suddenly more significant after losing some kind.
No-fault insurance is a type of insurance policy where insured’s are indemnified by their insurer regardless of fault in the incident.
Protected self-insurance is an alternative risk financing mechanism in which an organization retains the mathematically calculated cost of risk within the organization and transfers the risk specific and limits to an insurer so the program’s maximum total cost.
A well designed and underwritten protected self-insurance program reduces and stabilizes insurance costs and provides valuable risk management information.
in this insurance world, own can have their marriage insurance that means that if their marriage end with a divorce, then divorce insurance pay the insured cash benefits.
There is also the facility of the interest’s rate insurance which protects the holders from adverse changes in interest rates, for instance, for those with a variable rate loan or mortgage.
Insurance company facilities tuition insurance which insures students against involuntary withdrawal from cost i-intensive educational institutions.
In travel insurance, insurance is covered by those who travel aboard, which covers certain losses such as medical expenses, losses of personal belongings, travel delay, and personal liabilities.
Title insurance provides a guarantee that title to real property is vested in the purchaser or mortgagee, free and clear of liens or encumbrances, usually issued in conjunction with a search of the public records performed at the time of a real estate transaction.
Tax insurance is increasing day by day and being used in the corporate transaction to protect taxpayers in the events that a tax position it has taken is challenged by the IRS or a state, foreign taxing authority or local.
Purchase insurance aims to protect the products people purchase, such as mobile phone, laptops, desktop, etc.
There are such insurance companies that do the pet’s insurance against accidents and illness, or some companies cover routine or wellness care and burial as well.
Business insurance covers individual losses of income, and the expenses incurred after a covered peril interrupts normal business operations.
Expatriate insurance protects individual and organization operating outside of their home country with protection automobiles, property, health, liability and business pursuits.
Media liability insurance is designed to cover professional that engage in film and television production and print, against risk such as slanders.
Aviation insurance protects aircraft hulls and spares and associated liability risk such as third party liability and passenger.
in the case of life insurance, the policyholders who take the profit policies are required to pay a comparatively higher premium than those who take non participating policies that entities to share the insurers’ profits.
There are certain types of life insurance bonus like a simple reversionary bonus and compound reversionary bonus.
In a simple reversionary bonus, the rate of percent is calculated on the insured based on the availability of the divisible surplus. This declaration is made periodically, and the amount of bonus is added up to the sum assured.
Insurance is always being a good kind to humanity in any case, whether that is an emergency or a long term problem.
Insurance is such an essential factor these days that people take it as a basic need for them.
Various risk levels were running near us and our property, so insurance became the protection shield for them.
Insurance also helps to understand our life in so many ways and worthy of taking a risk.
We cannot stop unpredictable events, but we can surely put some medicine on those worst conditions through insurance.
Losses were expected these days because so many blockages for export or import in goods may occur, and insurance helps them overcome it.
It provides good stability in the economic sectors of a country as well as personal good.
There is a lot of safety method available on insurance for the individual business.
It will save the owner from financial distress and many more family problem which arise from inevitable loss on personal property.
Insurance also helps to solve various unemployment problems in society and inside the country.
Insurance also helps the country economy by investing in various development sectors with the help of available resources.
With the help of insurance, any company can work to its fullest potential and bring its good best among the best.
Especially life insurance is essential for those who have more senior members in their family, and money will help cure illness.
It will divide the individual risk into various large groups so; it helps maintain everything perfectly.
The insurance company is always there to minimize the risk factor of people and give them a solid backup.
Most middle family people get their life insurance so that it may help them when things go wrong.
Insurance is also responsible for promotes commerce and trade in the national or international market.
These days there was a lot of insurance company, and they start to show competition on the market which indirectly gives a lot of profit to people.
It also has a helping hand on saving where people can save their money for future use with friendly interest.
The insurance sector encourages the nation to reach its highest growth rate and youth to do something in their home nation.
Insurance may work as a critical factor in running a lot of big business and infrastructure factories.
It is effortless to understand the rules and policies of the insurance company so; anyone can fill the firm and become a member of the company.