by Marlene Mcpherson

Created on: July 10, 2010   Last Updated: July 11, 2010

Without a doubt insurance is a modern day wonder!  This tool is one of the basic necessities of life. Gone are the days when we list food, shelter and clothing as the basic to life. Instead, we now add to the list education and insurance. Government, international agencies, business entities and the average individual are all involved in obtaining a policy of insurance for property, goods service or life. This has come against the background that life has many risks and to minimize it insurance comes into play. As a result, there are different types of insurance that can cater to the various needs.

There are at least six reasons for this important commodity, insurance. These reasons are universal and affect all people regardless of age, creed and religion.

Disability – Science has solved a number of diseases but still many new ones come to haunt us, consequently, personal life insurance has come to help alleviate some of the problems.   With the provisions of money in the form of coverage, help can be had with getting the requisite treatment that is necessary.

Death - this is inevitable.  Although many persons are living longer yet death stalk us; therefore a provision for taking care of our love ones - children and spouse, the settlement of our estate, while we are gone can be done.  In addition, plans for burial can be done with this all important tool. 

Old age - due to the aging process many persons fall prey to diseases or become prone to certain conditions that make it difficult for the work life to be continued so an income replacement is necessary and this is how insurance comes in.  

Education – there is a cost to this very aspect of life especially as one think of embarking on tertiary studies and a timely saving plan can be done so that provisions for this important step can be taken hassle-free.

Loss of goods - goods are lost  in the air, at sea or on land due to all types of accidents, and when this happen compensation can be had through insurance. Certain goods of high value when stolen can also be compensated for so that the claimant can enjoy ownership once again by repurchasing them.

Accidents and lost of life- with the global village that we are all a part, most government see to the compulsory use of insurance, whether for land, sea or air.  Accidents take place and the party that is wrong will make some amount of compensation and this entity insurance is used to make the necessary settlement.

It can be concluded that insurance serves many purposes and this important instrument aims to make life smooth just as if that accident or disease did not happen.  It is used to settle many conflicts that would happen if this important tool was absent.  No wonder it is a modern day wonder and everyone who is qualified to have a policy should own one.

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