Insurance provides financial security by compensating for covered losses. In the event of an unforeseen event, such as illness, accident, property damage, or loss of life, insurance can help mitigate the financial impact.
Insurance allows individuals and businesses to effectively manage risks. By transferring the risk to the insurer, policyholders can focus on their daily lives or operations without constant worry about potential financial losses.
Having insurance coverage brings peace of mind. Knowing that there is a safety net in place provides reassurance and reduces anxiety, allowing individuals and businesses to navigate life’s uncertainties with greater confidence.
In some cases, insurance coverage is legally required. For example, auto insurance is mandatory in many jurisdictions to protect against liabilities arising from accidents. Compliance with such requirements is essential to avoid legal penalties.