introduction of insurence?

Question

when the insurance is intrduced to people
what is concept of that

Answer 1

Insurance is anti-risk. There are many things that could happen in life to me or to my property. Some things are inconsequential, other in things are expensive (financially or emotionally). Insurance helps reduce the financial aspects of negative events.

I insure my house against theft and against fire and water damage because it would be expensive to replace. I don't insure my pencil against loss.

My wife and my child would be devastated if I were to die. I would leave them with debts and the loss of my income - so I bought adequate life insurance to reduce the financial impact of my death.

Talk with an insurance agent about the various risks that you take and how insurance can help.

Answer 2

Insurance covers possibilities.

The possibility of health problems, accidents, and any unforeseen financial event. Insurance will lessen the effect of these things. Health insurance will help to cover some day to day health related problems (doctors visits) and catastrophic health problems like heart attack, cancer, stroke. When these things happen you health insurance will cover you so your financial obligation will not be as bad. Depending on coverage these bills cut be cut in half or even paid completely.

Insurance in general works by hedging the probability that the majority of people with the insurance will not need the coverage benefit. Since the most people don't need it the money taken in by said companies will be able to go out to those who do need the coverage.

Most people will not have the catastrophic health events that will require the insurance but on the off chance it happen the coverage will protect those who do.

If you have other questions on this, I can help answer them

Answer 3

in south africa, most peole cant afford vehicles so the bank loans them money. since the bank is giving out money , it is required then for you to take insurance since the bank has insurable interest in the vehicle. it is to avoid you owing the bank R500 000 for a new Mercedes Benz SLK if its written off in a MVA. the insurance pays it out to the bank and u can be assured that you ont owe the bank that half a milion for the vehicle....