The Value of Insurance: Why is it so Important in Society?

It's no secret that insurance plays a vital role in society. From providing financial security and peace of mind to contributing to the economy, insurance is an essential part of our lives. But why is insurance so important?Insurance promotes greater safety for individuals and businesses through loss control and risk management. It also helps communities recover after a natural disaster, and contributes trillions of dollars in taxes, funds, and investments to the economy.

The problem arises when customers don't understand the value of insurance, since it's an intangible product. Unlike a car, jewelry store, or house, you can't physically see or retain the value of an insurance policy. The true value lies in the financial security and peace of mind that comes from knowing your property and well-being are protected after a catastrophic event. Through various types of insurance plans, the insurer protects society's wealth. Life insurance provides protection against the loss of human assets.

General insurance policies protect property against losses due to fire, theft, accidents, earthquakes, etc. Therefore, both general and life insurance offer protection to stabilize the business situation and financial position. Insurance is a financial safety net that helps you and your loved ones recover after something bad happens, such as a fire, theft, lawsuit, or car accident. When you take out insurance, you'll receive an insurance policy – a legal contract between you and your insurance provider. In addition, when you suffer a loss covered by your policy and file a claim, the insurance pays you or a designated beneficiary according to the terms of your policy. Today, approximately 90 percent of U.

S. residents have health insurance. The past five years have seen significant progress in health coverage. Health insurance facilitates access to care and is associated with lower mortality rates, better health outcomes, and higher productivity.

Despite recent advances, more than 28 million people still lack coverage – putting their physical, mental and financial health at risk. Residents obtain health coverage from a variety of private and public sources – such as their employers or through direct purchases in the individual market (private sources), as well as through Medicare, Medicaid or Veterans Affairs programs (public sources). The number of people with health insurance has increased significantly in recent years – with nearly 20 million people newly insured. Most of these people were able to enroll in coverage offered through the Medicaid program, their employer, or the individual market as a result of coverage programs and insurance market reforms authorized by the Affordable Care Act (ACA).People without health insurance postpone the care they need and rely more on hospital emergency services – leaving scarce resources to treat conditions that could often have been avoided or treated in a lower-cost environment. Not having insurance also has serious financial implications for individuals, communities and the health system. In conclusion, insurance is an essential part of our lives – providing financial security and peace of mind while contributing to the economy.

It's important for individuals to understand the value of insurance so they can make informed decisions about their coverage.

Carl Somilleda
Carl Somilleda

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