4 Reasons Why Insurance Is Important
Purpose of Insurance
For some people, insurance is pointless. They see it as a way to waste money instead of what it really is: an investment. Ok, sure. It might be required by law, but there are a lot more reasons why it exists. Although you might not see the benefits of insurance immediately after purchasing a policy, there are a lot of benefits to it, not just for yourself but for the world.
Protects from Financial Trouble
The primary purpose and benefit of insurance are to protect you financially during the hardest times of your life. In the event of an illness, a car crash, or death, coverage takes care of you and your family and makes the burden easier to manage.
Collectively, citizens pay taxes to care for the uncompensated victims of accidents; otherwise, they would become a drain on the state. Having insurance minimizes the amount of money you have to pay in taxes for this purpose, meaning there are tax benefits for the amount of premium paid. Otherwise, the amount of money you’d have to pay in taxes would significantly increase.
Fuels the Economy
If there were no insurance companies, there would be fewer businesses out there because there wouldn’t be anything that protects them in the event of a loss. Businesses would be entirely vulnerable to all sorts of risks that could quickly put them out of business and business owners would be potentially just wasting their money.
Enables You to Dream Bigger
Without insurance policies, you wouldn’t be able to get a new car or a new home, unless you were able to pay for it in cash. Banks need to make sure they get their money back in full, so if there were no insurance, what bank would dare to take the risk to lend you money in the first place?
Insurance doesn’t only benefit you as an individual; it benefits all of us as a society. Far from being a waste of money, insurance is a significant investment that helps give you peace of mind even in the toughest of times. Talk to your agent in Colorado to help you understand your insurance needs.