Which Best Describes Why People Purchase Insurance?
People buy insurance to protect themselves from unexpected events, secure their assets, ensure financial stability, and find peace of mind by transferring risks and preparing for uncertainties.
by Sai V
Published Oct 27, 2023 | Updated Oct 27, 2023 | ๐ 1 min read
Article continues below advertisement
Which Best Describes Why People Purchase Insurance?
People buy insurance to manage life's risks effectively. It serves as a vital financial tool, safeguarding against unexpected events like accidents and natural disasters. By transferring these risks to insurers, individuals secure their assets and ensure financial stability.
Insurance offers peace of mind, allowing for preparedness and resilience in the face of uncertainties. It acts as a proactive measure, enabling people to navigate challenges without severe financial repercussions, making it a crucial investment in personal and economic security.
What is Insurance?
Insurance is a contractual agreement providing financial protection to policyholders against specific losses. Through policies, individuals can hedge against accidents, injuries, property damage, and liability. Various types such as life, health, homeowners, and auto insurance offer essential safeguards. Key components include premiums, deductibles, and policy limits, ensuring comprehensive coverage.
Related Articles
Quiz Questions On Insurance and Risk Management - 3
799 days ago
Quiz Questions on Credit Management and Awareness
800 days ago
Disclaimer : The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.