General insurance is a coined umbrella term for health, travel, car, and home insurance. In essence, the benefits of buying general insurance are many, and vary based on the type of insurance you opt for. Here are some of the General Insurance benefits that could help you in more ways than you realise.
- The most important benefit is that it helps you achieve peace of mind. Life is full of uncertainties, the primary reason everyone opts for insurance is to earn some peace of mind. Insurance gives you time to enjoy with your family without worrying about your damages or losses.
- It helps you in the payment of losses and avoiding damage expenses. An insurance policy is a contract used to indemnify you for all your losses incurred.
- It helps you in managing cash flow uncertainty. Insurance provides payment for losses you incur. Therefore, the uncertainty of paying for your losses out-of-your-pocket is reduced significantly.
- It also helps you in promoting risk control activity. Insurance policies provide incentives to implement a loss control program because of policy requirements and premium savings incentives.
- It also promotes efficient use of an insured’s resources. Insurance makes it unnecessary to set aside a large amount of money to pay for the financial consequences of the risk exposures that can be insured. This allows that money to be used more efficiently.
- Another important benefit of insurance is support for the insured’s credit. Insurance facilitates loans to individuals and organisations by guaranteeing that the lender will be paid if the collateral for the loan is destroyed or damaged by an insured event. This reduces the lender’s uncertainty of default by the party borrowing funds.
- Insurance also provides a source of investment funds. Insurance companies collect premiums up front, invest those premiums in a variety of investment vehicles, and pay claims if they occur.
- It also helps in reducing social burden. Insurance helps reduce the burden of uncompensated accident victims and the uncertainty of society.
It is important that the amount of insurance one buys matches their needs and the needs to their families. The premium of the insurance also changes based the purpose of the insurance.
You can contact our Relationship Manager, who will match your needs with your requirements.