Table Of Contents
- Is It Really Necessary Having An Insurance?
- What is Insurance?
- Types of insurance companies.
- What is a Nest Egg?
- Advantage of having an insurance.
Is It Really Necessary Having An Insurance?
This is a question that people tend to ask every time once the subject of having an insurance comes up but in this article, you will see reasons why having insurance is very necessary for every individual.
What is insurance?
Insurance is a thing providing protection against a possible eventuality. It is also an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium.
Nowadays, we have many insurance sectors which are made up of companies that offer risk management in the form of insurance contracts.
The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policy holder, pays a smaller premium to the insurer in exchange for the protection on that uncertain future occurrence.
Types of insurance companies
- Captive insurance company
- Domestic insurance
- Mutual insurance etc
They are many types and forms of insurance but one should always consider purchasing the right type and amount of insurance. factors of purchasing the right type of insurance are determined by your specific situation and it’s the most common form of insurance that every individual should have example: life insurance, health insurance, auto and long term disability.
It has been proven that most people spend almost all their livelihood on cases of health, disability and other risks that comes with living. Therefore, you are advised to have an insurance in the form of “A NEST EGG“.
What is a Nest Egg?
It is a substantial sum of money or other assets that have been saved or invested for a specific purpose.
Advantage of having an insurance.
- It provides security.
- source for collecting funds.
- Encourage savings.
- Encourage international trade.
Having an insurance is very essential since it is capable of providing protection against a possible eventuality which we can never be able to predict as human beings so open an insurance account today with a reliable insurance company to avoid going bankrupt due to these unpredictable future occurrences.
if you want to invest kindly visit Stanbic Bank for more details.
By Chukwu Maryjane.