business insurance

3 Benefits of Having Any Kind of Insurance

by Josh Biggs in Tips on 20th October 2021

Insurance is peace of mind. It allows us to not have to worry financially about what might happen that we cannot afford to pay for. We can buy insurance from companies such as one sure insurance to protect against most eventualities in exchange for a small premium that would fund a much larger potential loss.

So, let us consider, using some different types of insurance as an example, some of the benefits insurance will provide.

Legalities

Insurance, in some instances, is required to be held by law. Examples here include car insurance and employer’s liability insurance.

It is necessary to purchase insurance against the possibility that you might cause damage to another’s vehicle while driving yours. This type of cover is known as third-party cover and will also cover any injury the other party might sustain. To increase this cover to include yourself, this is when comprehensive cover needs to be purchased. This then further extends the benefit of having insurance.

Employers’ liability is necessary to protect employees who could potentially be injured within their working environment. This type of policy will cover actual injury or illness that an employee might sustain. Compensation would be due in this case. This type of policy is a legal requirement for most businesses that employ staff regardless of size.

Peace of Mind

Insurance is financial peace of mind because its purpose is to put someone back in the same financial position as they were in before an unfortunate event happened. In many cases, this financial peace of mind will extend to peace of mind in general to help someone relax and be able to then concentrate on other matters relating to their home life and business.

With car insurance, a vehicle is not always repaired when it is considered that the vehicle is not of a value worth repairing. In this case, an insurance company will write off a vehicle and then pay out the amount the vehicle is worth. This is the only instance where peace of mind is affected because if you were sentimentally attached to your vehicle then insurance cannot, of course, cover that. There is some good news here, though, because it may still be possible to keep your vehicle in these circumstances. You may be able to buy your vehicle back from the insurer. Once your settlement fee is agreed, the insurance company will legally own your car. So, it is possible to buy the vehicle back from them as long as you act quickly. This is an example of where financial peace of mind also becomes general peace of mind. We can protect the car that we have become attached to.

With household insurance, you can not only cover your possessions inside your home but also when taking them outside of it with “all risks” cover. Another additional cover is accidental damage which will mean you can insure against you or your family, or even a pet, causing damage to something such as a carpet. Be aware, though, making lots of claims will ultimately put your premium up.

Protection for Loved Ones

Purchasing life insurance will provide financial protection for your family should the worst happen. This is particularly important when the one insuring themselves is the main income provider. So, this would be a significant hit should this income then be lost suddenly. It is also a good idea to have a good balance of savings to protect a family for at least a few months while earning potential is assessed among the remaining householders.

If you are the sort of person who worries a lot about everything, or your loved ones are that way, there is no doubt that insurance will benefit your mental health and help relieve anxiety. 

So, there are three key benefits here of having insurance. We are abiding by the law that requires us to have insurance, creating peace of mind for ourselves, and then also for loved ones who would otherwise have to bear the financial hardship from an unexpected event that is always a possibility.

Categories: Tips