The Purpose of Insurance

 The Purpose of Insurance

Insurance can be a drain on the budget and many people think of it as a hassle. Indeed, the state government may even require you to have some form of insurance if you drive a car. Nevertheless, sometimes people can lose sight of the major reason for having insurance. If you are underinsured, perhaps take a look at several insurance companies in Fort Myers Fl.

Insurance: Its Real Purpose

The real purpose of having insurance is to transfer financial risk to another party so as to avoid catastrophic monetary loss. In reality, it is purchased as an investment in one’s future financial health. In all of life’s operating arenas like health, transportation, and living in the enviromenmet, there are events that can occur, albeit rarely, that can cost more than any single individual can pay for. Examples of these occurrences are hurricanes, hailstorms, car accidents, and long-term illnesses.

Types of Insurance

There are different types of insurance because there is a variety of areas in which catastrophic loss can occur. Mor common types of insurance include:

  • Health Insurance: To cover the costs of staying well.
  • Life Insurance: To continue an income stream for others in case of untimely death.
  • Vehicle Insurance: Covers against the high cost of many auto and read accidents
  • Home Insurance: Enables the holder to repair their home if a natural disaster causes high-dollar damage
  • Disability Insurance: Designed to protect against the loss of ability to work

Of course, there are many more types as well. In fact, you can probably find an insurance policy to guard against most any potential mishap.

In summary, insurance may not be the most exciting topic in the world, but having a good grasp of just what insurance is can help people make informed decisions about their personal situation help them recover more quickly from an unforeseen problem.

 

Dorothy Moore

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