Why not you go for insurance? Of course, our life is full of risk. Every step of our life may be fallen in danger. We can’t avoid these types of risks or dangers. But insurance can give us to provide financial certainty & protection.
Let’s see the functions of insurance.
There are two major functions of insurance.
Primarily, insurance works for certainty, protection & risk-sharing. It includes primary functions for insurance. Have a look-
1. Certainty: Insurance provides certainty in case of the uncertain situation. By doing a better plan, this uncertainty of losses can be reduced. In this case, insurance is the best solution, If you make insurance, the insurer will provide you certain sum money of risk occurring. There are also uncertainties of loss occurring like when will occur or how much loss will occur. But insurance improves all this uncertainty & assured to provide payment of losses. That’s why the insurer takes the premium from the insured.
2. Protection: Protection is the main function of insurance. In the absence of insurance, people may suffer a lot because time & amount of loss may not be determined previously. In this situation, the insured person gets some relief from suffering.
3. Risk-sharing: Risk is always uncertain; this risk can fall you in danger. Like the accident, sudden death, crush in share market, etc. Insurance can share your risk by providing financial support.
Besides primary functions, insurance has some secondary functions. Have a look-
1. Prevention of losses: Insurance gives financial protection. In case of losses occurring, insurance provides a certain amount of sum to the insured. If the amount of premium is lower that invites more people to come into under insurance.
2. Provides capital: Insurance provides capital to the society because of the insured money invested in the channel that can generate huge profit.
3. Improves efficiency: Insurance reduces worries & sufferings in case of sudden death, accident & destruction or damages of property. The tension-free person can devote himself to better outcomes.
4. Economic progress: Insurance helps the society from losses of life, damages of property, increase capital, protects assets & this way insurance protects society from disaster.
After knowing these major functions of insurance, you must go for insurance.