Public Safety And Insurance Essay
The idea behind insurance is, it is necessary for the protection of an individual against any or all forms of financial loss. In other terms it acts as a safety net with a contributory attribute to the overall lifestyle and economic health of our social construct or society. In the midst of a crisis or an accident, the role insurance plays is as a financial resource that aids in diminishing the burdens that result from the crisis or accident.
Since a natural function of life is “Risk of the Unknown”, the following information represents the importance of insurance;
Financial Security and General Safety: Living with the unknown, is understandably a function of life, meaning that the risk of loss is …show more content…
the monthly payments for the policy, it begins to build savings, in a manner of speaking. This is accomplished through the investment, of the collected payments, into stocks and securities owned by the government. The utilization of these funds by the government go towards industrial, and economic developments designed to improve employment opportunities and the social well being of the country.
Insurance Identifies with Savings: Accordingly the main function of insurance lies in the provisionary function of financial aid against loss. A subsequent function is the creation of an avenue for savings. One such type of policy known with this ability is a life insurance policy. The generation of saving occurs through the payment of the premium creating an investment account the grows over time.
Additionally, a life insurance policy is designed to reach a maturity date, this is when the policy holder can realize the savings by receiving the amount of monies accrued via the payment of the premium and its investments. Therefore, identifying as a form of …show more content…
It does so through a mobilizing effect on domestic savings. This translates into turning the collected capital into investments that enhance and promote business activities, (e.g.commerce). Furthermore, it produces financial stability in addition to mitigating loss in the face of crisis.
Health and Insurance: Everyone can understand that our health is at risk in any given moment. Medical insurance, therefore, plays a big role in subsidizing the risk against physical loss due to an illness or an accident. Therefore, as a result, subsequent to the high cost of medical care, the need for insurance is substantiated to protect against the financial burdens generated.
How Insurance Handles Risk: How insurance functions is it spreads the financial burden created, when a policyholder is involved in an accident, among a greater amount of resources. This translates into the use of the funds collected through the premium payments received from all clients, (policyholders), of the insurance company. Accordingly, when a claim is made in the face of an injury or the damage of property, the compensation comes from these