Insurance And The Need For Public Safety 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 ever present no matter what we do. The loss can come in the fashion of damage to our belongings and our physical person, such as the loss in the use of an arm or leg. Insurance therefore, helps guard against the financial ramifications that a loss in these areas can create. One example might be that a fire burns down a family’s home. An insurance policy on the home helps finance the replacement of the home and the belongings inside the home as best it can and within reason. Another example is an insurance policy that helps maintain a family’s lifestyle after the death of the head of the household.
An Insurance Policy as a Financial Resource: How an insurance policy functions is, as premiums are collected, e.g. the monthly payments for…