With insurance, however, the little guys have support if they want to take a risk, which means they stick around longer. Another important reason to save money is your retirement. Term insurance is one of the life insurance plans offers life coverage to the individual for a specified term with affordable premium cost. A great example of this is auto insurance. To secure our life. It’s valuable that you point out that it’s important to have insurance for your business to protect you in case you get sued. As a result, they are more risk averse, and in some cases, they sell out to the big guys. The main enemy of life is uncertainties and one can plan for the uncertainties in life with insurance. This is why insurance is especially important once you start a family. The purpose of insurance is to protect you from unexpected financial burdens due to catastrophic events. 1. Unfortunately, it is a necessary evil, and people don’t feel that they really have to have it until they’re in an accident. Insurance is a safety net for when risks go wrong. Why Is Homeowners Insurance Important?. There is virtually nothing that you cannot insure, but protecting yourself and your assets against loss is one of the most important reasons for having insurance. Health insurance provides all healthcare costs. If a risk goes wrong, the big guys will be able to survive. Acts of war are not covered by insurance. The explosion did $100 million in damage to the community, including schools and hospitals. Life Insurance. The fertilizer company had only $1 million in general liability coverage. Insurance is a great investment channel as well. Paying for homeowners insurance makes some people cringe. Chapter 10: Financial Planning Case 1. People always stress on how much money they need to pay upfront for the insurance product, instead of looking at the big picture. If you get into a car accident and damage your car; auto insurance helps pay for repairs. Your family should not be left alone to struggle in your absence and life insurance plans will come to their rescue. If you have life goals, such as a worry-free retirement, education for your children at the best schools and colleges, buying a house or a car — then building a financial plan can help you achieve these goals. The reality is companies think they … In short, to get the money your business needs to keep going, it’s likely you enjoy the benefits of insurance. Life insurance can support the life of a family, should a member be lost. Insurance is important because it is designed to pay various types of claims depending on the type of policy that applies. Providing protection and mitigating your risk is the simple motive of insurance. It may … Now the city is suing West Fertilizer and likely will win all of the company’s remaining property and assets that were not damaged by the disaster. Extra coverages include Gap Insurance, Rental Insurance, Roadside Assistance, Custom Equipment, OEM Endorsement, Minor Violation Forgiveness and Accident Forgiveness. HNI works with high-performing companies to help them address the hidden risks in their business and avoid The Insurance Dependency Trap. But the federal government stepped in and required coverage in the name of keeping commerce moving. What’s more is the city also is suing the suppliers to the fertilizer plant, claiming they knew they were supplying inherently dangerous materials. Insurance is something many business owners don't want to think about. In some cases, homeowners insurance is required. No one plans to get sick or hurt, but most people need medical care at some point. Life Insurance . For example, if you have a mortgage, your lender is most likely going to require that you have homeowners insurance, says the Insurance Information Institute (III). Safeguard your life with insurance and realize its benefits. It is also a great tax saving tool that helps you reduce your tax burden. The sooner you start saving for retirement, the less you will have to save in the future. This is where a term insurance plan comes in handy. HNI also offers the basic services of insurance and employee benefits. Life insurance is scary thing to think about but it is an essential part of financial planning. Why is having insurance important? For example, life insurance plans safeguard your family and their financial needs, in case of your unfortunate and untimely demise. In case of term insurance plans, your family will not have to face financial ordeal in the event of your untimely death and you can gain coverage for the given term at an affordable cost. Insurance is important because it basically protects you Finnancially. There are various types of insurance products like life insurance plans, term insurance, health insurance, home insurance and more. They can take a hit. Life insurance plans facilitates systematic savings by allocating funds in the form of premium every year. With your own car, you are likely to cut down on costs and time spent on public transport. When you buy insurance, you're buying a promise. Will your family be able to meet their future needs without you? I’m thinking about buying a restaurant in the near future, so I will probably want to purchase some good business insurance for it. Here are a few other reasons why having life insurance is important. If you don’t have health insurance coverage, it might be a good idea to start looking for coverage today. Hopefully these stories have shown you just how important life insurance is and that it can save the lives of the people you live with. It is important to have insurance because of the following reason. HNI has offices in Milwaukee, Chicago, and Minneapolis. The risk of falling sick, risk of losing your car, the risk of facing an accident when travelling in your bike, the risk of your own death and more can be dealt with an effective insurance policy. Was terrorism an act of war? 4). Enterprise risk management (ERM) is an enigma. At the end of the policy term, the policy holder can reap the benefits by getting a lump sum payout that will result in a great wealth corpus. You can have a complete peace of mind, when you manage the uncertainties of life with insurance. 1. There are many different kinds of insurance, some of which cover a person and some of which cover businesses and other entities. Money invested in these special accounts has the potential to appreciate in value, earning interest. It's not like buying a chair or a shirt or groceries. Auto insurance is compulsory in Wisconsin (home of HNI HQ). Make use of such insurance plans to alleviate the risk factor in your life. The big question was, How would the 9/11 attacks be classified? If you have a flood or some kind of damage to your expensive belongings due to Mother Nature or any other cause, you can end up losing everything. This reason is tied to No. Auto insurance helps mitigate the risk of life on the road (of which there are many!). With rising medical costs, health insurance is mandatory to hold. A sobering example of insurance in action is the West Fertilizer Co. explosion in Texas this spring. 2 — lenders require insurance. This reason why insurance is important dovetails nicely with peace of mind (No. Copayment – What you pay each time you visit a provider. Fortunately, the insurance industry decided the attacks were not an act of war. If enough little guys leave the industry (and one big guy swallows them up), you're left with a monopoly. HNI has offices. Not having the proper coverage can result in a devastating lawsuit or liability claim. Acts of war are not covered by insurance. An insurance policy is a contract used to indemnify individuals and organizations for covered losses. Car Insurance Extras . Explanation: Insurance is a agreement where a person gets financial protection or compensation on any type of damages from the insurance corporation.. Making that small investment in any insurance plans, will enable you to be tension-free and offer security in advance. In the case of the West, Texas, plant explosion, insurance could have helped a community to recover after a crisis. Be it, life insurance plans, term insurance, health insurance or vehicle insurance, the importance of insurance is to be understood by all. In this case, insurance likely prevented many busin… The right type of business insurance can be as important as having business insurance coverage at all. But the federal government stepped in and required coverage in the name of keeping commerce moving. However, after 9/11, some insurers began excluding terrorism. At a certain point, you're going to want to put some thought into life insurance. You know that insurance is a necessity in some cases. Since the other guy has insurance the insurance company pays for your repair or a percent depending on your coverage plan. Learn more about the different types of insurance that companies can choose from and how to … Many executives say they do it, yet gather 10 of them in a room and they can’t agree on what it is. But, what will happen, if you suddenly have to face the end of your life? Live a peaceful life and manage your risks that you can face in everyday life. Should a key member or piece of equipment go out of commission, the business can carry on, thanks to insurance. HNI also offers the basic services of insurance and employee benefits. 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