Insurance

Insurance means a protection from financial loss. It represents through a contract of policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary. General insurance or non-life insurance policies provide payments depending on the loss from a particular financial event.

Advantages of Insurance

  • PROVIDE ECONOMIC PROTECTIONS
  • SHARES RISKS
  • ENCOURAGE SAVING
  • GRANTS LOAN

Disadvantages of Insurance

  • DOES NOT COMPENSATE ALL TYPES OF LOSSES
  • LENTHY LEGAL FORMALITIES FOR CLAIM SETTLEMENT
  • SOMETIMES, THE TOTAL AMOUNT OF PREMIUM MIGHT BE HIGHER THAN THE POLICY AMOUNT RECEIVABLE ON MATURITY