Understanding The Importance of Insurance

Understanding the importance of insurance

The importance of insurance cannot be underestimated. Having insurance is an essential part of financial planning. As important as having a will, drawing up a monthly budget and keeping to it, and consistently cutting down on debt. Everyone wants their loved ones to feel safe and financially secure. Having the correct type of insurance is one way to take control of your present and future. 

Life insurance, auto insurance, and home insurance are the three standard insurance types. Then there is personal health insurance when your other health insurance plans do not cover everything you and your family need. If you run a business, you might need commercial insurance, commercial auto insurance, or commercial property insurance. No matter the protection you need, there are benefits to owning insurance. It helps with financial stability, brings peace of mind, and reduces stress during difficult times.

Insurance Ensures The Family’s Financial Stability

Why do we need insurance? What is the purpose of insurance? It is a question often asked when people see the monthly premium they would have to pay and imagine what must be sacrificed to afford insurance. Looking at it from the other side, a different picture emerges. 

Imagine you have a business, and someone gets hurt on your premises, but you do not have insurance. Paying the claims related to that accident means there are less funds to expand the business, ultimately impacting your family’s financial stability. A monthly insurance expense then becomes an asset rather than a liability. 

The purpose of insurance? It is protection. It protects your family finances against losses due to theft, fire, illness, and accidents, to mention only a few possibilities. You are the primary breadwinner and need a vehicle to get to work, but someone is distracted and drives into your car where it is parked. With insurance, the vehicle gets repaired, and you continue to earn an income. 

Insurance Brings Peace of Mind

It is always wise to ask what does insurance cover. Indeed, you should be fully informed of the details of your insurance coverage, no matter what you are protecting. Whether it is your life, home, the family’s health or even a boat. That knowledge brings peace of mind in a crisis.     

Accidents happen, and though most people never experience it in their lives, it is possible that an electrical short or gas leak causes a fire in your home, and there is extensive fire damage. Besides the fire damage, there is also the water damage caused by fire sprinklers or the fire department. With home insurance, you know your family home will be repaired, and you can tend to the emotional impact the accident had on your family.          

Insurance Reduces Stress During Difficult Times

According to statistics, more than 96% of Canadians are internet users. Almost every company today does business in cyberspace, increasing their exposure to hacking and other cybercrimes. Whether you are a large corporate or small business, protecting your business against cyber attacks is vital. A security breach not only puts a company’s data and virtual assets at risk, but when the information of clients is stolen, the reputational risk rises exponentially.   

During such difficult times, the role and importance of insurance become clear. If your business has cyber liability insurance, it can reduce the stress your company management experiences, as the financial side is taken care of. Then management and the IT department can focus on shoring up the company’s digital defence systems.

Zippo Insurance wants to make the most beneficial insurance plans accessible to all. Do you need home insurance, travel insurance or commercial insurance? We can help you get the most relevant insurance quotes in just three online steps. Need to know more about the importance of insurance? Contact Zippo Insurance today.