Insurance is the guarantee that you will get something after a fortuitous event that is destructive in accordance with your insurance contract. It can be life insurance or non-life insurance. When it comes to life insurance, it can be educational plans for the children, health insurance in case the insured gets a terminal illness or for serious injuries and disabilities, or life insurance in cases of death. For non-life insurance, it can be property insurance for the building, for vehicles, or for other properties in cases of fire, theft, flooding, and other risks and dangers. These are just the basic forms of insurance because there are still a lot of different forms depending on the company, the insured, and the contract.
The importance of insurance is that these days in the world, there are so many risks. We do not know when a virus will infect us when a truck might hit us when a fire might destroy our property. It is important to be secured. Insurance gives us security in the sense that if the dangers in the contract might occur, we will still get something back. We are not at a total loss. For example, your vehicle is insured with insurance for an accident that also covers injuries of the passengers, in case that you get into an accident while riding or driving that vehicle, you will get compensation from the insurance company for your hospital bills and for the repair of your vehicle. You will not spend a lot from your own pocket to pay for these things because the insurance company has you covered. There are also times when the policy will lapse because no dangers occurred and you might think that you are at a loss because you spent money on the insurance that you did not use. But think of it as a good thing that nothing happened and that you and your properties are safe. What if you are not insured and something did happen? Then worse comes to worst.