The Importance of Insurance
Life is full of risks and uncertainty. Would we call it life if it wasn’t? But it is this risk and uncertainty that plagues our collective mind with the potential threat to the safety and security of our possessions, families and health.
This is where the introduction of insurance offers us peace of mind; it is a tangible form of protection that safeguards our most prized assets and loved ones. It combats the risks and uncertainties of life with the certainty of payment at one time.
Insurance applies to all aspects of life, including areas of life insurance, mortgage insurance, car insurance, health insurance, travel insurance and more. Obtaining insurance to protect yourself against life’s uncertainty is common in today’s day and age, and there a few reasons why it’s so important:
1. Ensures family and business stability
In terms of the protection of your physical assets and income, insurance can offer you peace of mind for yourself and your family if unfortunate circumstances strike you down in your prime. Insurance provides financial support during an event or sudden loss that could affect your personal life or business. For example, it can offer protection from loss of income from death or sickness, loss of home from a natural disaster or unlawful damage, or the loss of property through destruction or disappearance.
2. Generates financial resources
Insurance companies generate funds by collecting premium, which can be invested in government stock or securities to strengthen economic growth in society. The funds collected mobilise domestic savings and turn the accumulated capital into productive investments. In this way, insurance plays a crucial role in mitigating loss, creating financial stability and promoting trade and commercial activities that result in economic development.
3. Offers support for unexpected illness
Investing in health insurance is essential today. Anyone can become a victim of illness unexpectedly in life – and medical expenses are not always affordable. Having the insurance to cover yourself when your personal circumstance is disrupted due to unforeseen circumstances can mean your family won’t need to stress under pressure from massive medical debt.
4. Brings peace of mind
Insurance allows you to shift the risk from your ‘uncontrollable’ thought folder to the ‘manageable’ one. It offers you a tangible form of protection in an area where the uncertainty is intangible and large. This means that when you buy a house or car, travel overseas, suffer an injury, lose a loved one or lose your job; you have some peace of mind over what will happen to you, your assets and the ones you hold close.
At Select, we offer free, no-obligation and quality advice to help you reach your financial goals. If you are looking to take out insurance, we can direct you on the right path to find the coverage that suits your circumstances. To make an appointment with one of our brokers, give us a call now on (08) 9417 3399.