Getting Insurance — What For?

The future is certainly unpredictable. Thus, every individual desires and strives to have a safe and secure future. Today, one key to achieve such is to get insurance. Many people have already trusted and earned its benefits, particularly from PPLIC; however, some people still do not understand its advantages and social significance. Why then is insurance important for an individual?

Essentially, insurance works both ways: it gives a sense of security for both the company and the client. The insurance company, such as the PPLIC, risks money for profits, whereas the clients risk money for benefits. Thus, when their partnership is successful, then they both achieve the security that they desire. Therefore, insurances have social and economic values.

At some point, getting an insurance promotes saving. There is what we call insurance policy, and this policy, which is often found in life assurance, is a suitable way to save and provide for the future. Because unexpected occurrences or emergencies happen, having this will be our weapon—it will prepare us for the future.

Furthermore, aside from having such savings, insurance may also be considered as a good investment. Knowing how insurance works, the premium that the client/insured pays accumulates every year. Thus, this accumulated amount earns interest.

Not only have that, the insured may still chosen other options on how to earn more interest/income, even until death. Insurance here then serves a useful purpose not only for protection but also as an investment.

Besides its social significance, insurance significantly offers solutions to social struggles. Basically, it provides compensation to victims of industrial injuries or road accidents and minimizes financial difficulties that arise from old age, disability, or death.

With these social struggles, insurance may serve as a useful device in solving them. Thus, it enables individuals, families, and companies to remain intact despite social struggles. In addition, insurance helps to decrease or remove various fears from the minds of the people.

The insured is secured in the knowledge that the protection of the insurance fund is behind him if some depressing event happens. Thus, insurance builds confidence and eliminates worries, which are difficult to evaluate, but essentially, its benefits are very real.

In summary, insurance has both an economic value and a social value. Its significance, advantages, and benefits may extend from birth until death and may expand in scope from an individual to the whole nation. Thus, having insurance will completely fulfill our desire for protection and security. This post is brought to you by Prudential Life

Mark Hugh Neri

Looking for financial planning workshop or for life and/or health insurance with investment options? Got questions related to personal finance? Feel free to message me at Money Gizmo (see link below)

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