Insurance offers consumers

protection from the costs of unplanned events.
a guarantee that a business will succeed.
income to start a new business venture.
full reimbursement after business setbacks.

Insurance offers consumers protection from the costs of unplanned events. Insurance is a way of defense from financial losses and is a type of risk management, mainly used to protect possibilities of contingent or uncertain losses.

EXPLANATION:  

There are many reasons why insurance functioned as a sector is key to the development of any economy:

1. Provides Safety and Security to Individuals and Businesses

Provides Safety and Security for Businesses and Individuals: Insurance delivers financial support and decreases the insecurities faced by individuals and businesses at every step of their life cycle. This delivers an ideal risk alleviation mechanism for events that can potentially result in financial difficulties for businesses and individuals.

2. Produces Long-term Financial Resources

The insurance sector produces funds at premiums from millions of policyholders. Because of the long-term nature of these resources, these funds are endowed in establishing long-term infrastructure properties (such as roads, power plants, ports, dams, etc.) that are important for national development. Job opportunities are enhanced by large investments that lead to capital formation in the economy.

3. Promotes Economic Growth

The insurance sector creates an important impact on the economy as a whole by mobilizing domestic savings. Insurance converts capital accumulation into productive investments. Insurance also allows loss mitigation, financial stability and endorses trading activities and commerce of these outcomes into sustainable economic growth and development. Thus, insurance plays an important role in sustainable economic growth.

4. Provides Support to Families in Medical Emergencies

Family welfare is essential for all and the health of family members is the greatest concern for most people. Increasing medical care costs and soaring drug prices are enough to drain the savings if not prepared properly. Anyone can be a victim of critical illnesses unexpectedly.

5. Spreads Risk

Insurance facilitates the transfer of risk of loss from the insured to the insurance company. The fundamental principle of insurance is to spread risk among a huge number of people. Large population obtains insurance policies and purchase premium to an insurance company. Every time a loss happens, it is rewarded from the collection of funds obtained from millions of policyholders.

LEARN MORE:  

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

•Which of the following are types of insurance?

•The least expensive type of life insurance is?

KEYWORDS: Insurance, protection

Subject  : History

Class  : 10-12

Sub-Chapter: Insurance

pacal the great: the throne was passed on to pacal through a female; as a result, he believed that he must legitimize his claim to the throne to add stability to his reign.

as a result, the daughter of ac kan's brother ruled until her son, pacal, reached an age old enough to assume the throne.

pacal the great became the king of the mayan city of palenque in a different way than most mayan kings.

pacal pointed out that ac kan had succeeded his mother as ruler, thereby establishing a precedent for the rule to pass through a female.  

he tried to justify that the way he gained the throne by connecting his mother with the divine mother and the mythological events that happened during the creation of the world.  

typically, the son of a male mayan ruler inherited the throne, but in 612 ce, king ac kan died and did not leave behind a male heir.

montezuma 1: even so, these wars of conquest failed to provide enough human sacrifices and because of this, he formed a triple alliance with cities in the valley of puebla-tlascala.  

in addition, montezuma realized that his government failed to the aztecs during the famine.

in order to appease him, montezuma increased the number of human sacrifices.

the aztec performed human sacrifices to their god huitzilopotchli because they believed he desired human blood.  

around 1440 ce, montezuma i became the fifth emperor of the aztecs and went on to rule for 28 years.  

soon after he assumed the throne, the aztecs were hit with a series of disasters, namely a plague of locusts, a flood, and a harsh frost  

huayna capac: huayna capac also fought to gain territories north of his empire in what is now ecuador.  

huayna capac significantly extended the inca empire to the south, into what is now argentina and chile.  

in 1493 ce, huayna capac became the eleventh ruler of the inca empire.  

huayna, therefore, wanted to gain his own lands and launched campaigns against tribes to the east and north of the empire.  

the inca empire reached its peak under the rule of huayna capac.

during this time the empire covered a vast territory including parts of present day colombia, peru, argentina, chile, bolivia, and ecuador.

during his reign, huayna heard about bearded men with pale skin that resembled the incan1 god viracocha and took this news as a bad omen.

huayna took this as another bad omen that predicted the destruction of the empire.