Insurance is a way of managing risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim.

Insurance contributes a lot to the general economic growth of the society by providing stability to the functioning of the process. The insurance industries develop financial institutions and reduce uncertainties by improving financial resources.

  1. Insurance acts as protection for your family and loved ones

If your loved ones depend on your financial support for their livelihood, then life insurance is a must, because it replaces your income when you die. This is especially important for parents of young children or adults who would find it difficult to sustain their standard of living if they no longer had access to the income provided by their partner.

  1. To leave as inheritance

Even if you do not have any other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. This is a great way to set your children up for a solid financial future and provide for any monetary needs that will arise.

  1. Insurance helps pay out debts and other expenses

In addition to providing income to cover everyday living expenses, your family needs insurance to cover any outstanding debts, like the mortgage, credit cards and car loans. Other expenses include funeral and burial costs that can easily end up being too much. You don’t want your spouse, parents, children or other loved ones to be left with any extra financial burden in addition to the emotional burden they’re already suffering.

  1. Insurance acts as an additional source of security

Like most parents, you probably want to know your children will be well taken care of after you die. You not only want them to get a quality college education but to provide for other life ventures like getting married or starting a business. For this reason, additional coverage is absolutely essential while your children are still at home.

  1. Insurance Helps provide peace of mind

We cannot know when we will die. It could be today, tomorrow or 50 years from now, but it will happen eventually. No amount of money could ever replace a person. But more than anything, life insurance can help provide protection for the uncertainties in life. Without a doubt, having life insurance coverage will bring you and your family peace of mind. It is one thing you can be sure of and you’ll no longer have to question whether they’ll be taken care of when you’re gone. Life insurance protects your heirs from the unknown and helps them through an otherwise difficult time of loss.

Visit www.infomoby.co.ke and find a list of Insurance companies and take up insurance cover today!

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