Essay on Why Is Insurance Important?

823 Words Jul 25th, 2016 4 Pages
Why is insurance important? Choose two types of insurance and discuss their characteristics.
The questions is why insurance important because it protects a person or entity from extreme financial loss or responsibility due to an unfortunate emergency, accident or negative unforeseen event.
There are many different kinds of insurance that can be purchased today on the market. Some of which cover a person and some of which cover businesses and other entities. Insurance can protect people from financial devastation should the worst-case scenario happen. Let’s talk about life insurance in general the benefits in investing into a policy. We’d all want our families to continue enjoying a good quality of life if we shall pass. But how would they do that without the present income, or without any assistants to help maintain the house or even raising or supporting children. We all know money can’t replace the person but it can certainly help ease your family’s suffering and allow them to live the kind of life you would have wanted for them. That’s where life insurance can help. The advantages of having a life insurance policy is life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured’s death. Life insurance enjoy favorable tax treatment unlike any other financial statement. Death benefits are generally income-tax free to the beneficiary. Death benefits may be estate-tax free if the policy is owned properly. Cash value withdrawals…

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