What Are the Benefits of Insurance?
Insurance companies offer many different products, each of them offering some type of protection against loss to the policyholder in exchange for premium payments. Each provides benefits by reducing the consumer's risks and inspiring increased peace of mind. Additionally, in some cases, people or businesses are required to have certain types of insurance in order to protect others.
An insurance policy pays you or the designated recipient when a covered loss is realized. The drawback to buying insurance, in many cases, is that you're paying for something you hope you'll never have to use.