What is an Insurance? - Explained

What is an Insurance? - Explained

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There's a substantial amount of risk involved in whatever we do and what others do in their lives. Even for machines to pets what we care the most and what we don't care the most carrying a level of risk of getting anything bad happen to them.

There's a probability of your car gets crashes not because you are a bad driver but because of another bad driver in the road. There could be emergencies where your family members do need a surgery immediately. 

What is Insurance?

Insurance is a fallout plan which is for anything but with what can be bought from cash. You can insure your life, but insuring the life doesn't mean that insurance can bring you alive after dying by an accident. Your car that you love the most could be met with an accident and breaking into a pieces where it's impossible to repair it again, and by insuring the car the you love the most doesn't mean that insurance will bring the came car to you back.

So you might be wondering what is really a insurance. Insurance is a financial model that you can choose to survival of your family or the people who loves if something goes with you. 

Having an insurance will help you to buy a new car or repair your car when your car met with an accident. Having an insurance will help you to pay the hospitalization bill when you needed to do a surgery in an emergency. Insurance will help you to build your home back when there's a natural disaster took place. Insurance could help your loved to survive when you passed away by something that you never expected.  

Making People Comfortable

There are times where the people have good economic levels and bad economic levels. Buying an insurance for a car will not cost as same the price of your car but when something goes wrong with your car, it will help you to repair the car or buy a new car.

Insurance can help a family when the main person of the family passed away. So the rest of the family members have sometime to think of what to do in the next couple of months to survive and re-imagine what to do.

When the business got attacked by fire, insurance can help you recover the cost of the fire and reopen the business by sooner. And the business could go sustainable without going bankrupt.

When insuring the marine or air cargo, the receiver can always recover the cost of the cargo valuation when something goes wrong with the airplane or the ship.

If a house got hit by a natural disaster, insurance can help the house owners and the family who lives there to build the house back and start the normal routine of the life.

Insurances can help humans in many different ways to make the people comfortable or make comfortable up to a certain extend. Or to get recover from a disaster that they never think of.

Risk Management

Insurance is a really good real life example for risk management. Insurances are there to manage the risk up to a certain extend. It's nearly impossible to do something without risk of failure, but insurances can help the business owners or individuals to gain back from what they lost in a crisis.

By having an insurance people can forward the risk of failure to the insurance company rather keeping to them self. So when something goes wrong by analyzing the incident, insurance companies can make the repayments to the individuals or the business to get recover.

If doing something without the insurance means anybody can be doing it to free fall, which is not good at all. There should be extreme precautions that needs to be taken to manage the risk. Because of that having an insurance can help people to manage the risk up to a certain extend and re-imagine the world that couldn't be think of in a crisis.