Although Finance and Insurance are strongly connected.
Finance is the procedure for obtaining necessary funds which include tasks like budgeting, investing, saving, borrowing and predicting.
It consists of numerous different fields, such as governmental finance, corporate finance, and personal finance, and it is essential to the operation of determining which country will succeed.
Finance deals with the management of money and investments.
Meanwhile, insurance companies are financial companies that offer financial security to people and businesses against potential losses. They achieve this by collecting premiums from subscribers and using those funds to settle claims to subscribers who suffer a covered loss.
The purpose of insurance is to assist both individuals and organizations in managing and reducing risk.
Both sectors are sometimes treated as independent organizations. But fewer people are aware of just how closely related insurance and finance are to one another.
I will discuss the connections between insurance and finance below;
Assets Growth And Protection
As a person or business owner, you should have a strategy in place to secure your assets while you are busy saving, making investments, and purchasing numerous properties. The purpose of finance is to assist you in increasing your wealth.
When your wealth has been growing, it is important to protect it against potential losses.
This is highly important, but some people did not trust insurance companies, and others did not fully understand the value of insurance or the risks of not having it.
My brother-in- law's friend once told me about the over 50 cars he lost in a fire accident some time ago. The man was a car dealer then. Overnight, there was a gas explosion close to the man's workshop, which caused numerous damages. He lost a lot of money because the fire department arrived at the scene late.
Everyone asked him whether his cars were insured, he claimed, but he responded that they were not.
When I questioned him about why he didn't insure the cars, he responded that he didn't trust insurance companies. But following the incident, he signed up with a common insurance provider
Insurance Firms Invest Premium Payments Back Into The Financial System
When I was a teenager, I used to wonder how insurance companies were able to raise such sums of money for their clients' losses. But when I later contacted a staff member of an insurance firm about it, I learned that they invest the money from the premium packages in foreign exchange, stocks, and real estate.
Returns are generated from this, which can be used to pay for expenses and settle claims.
In conclusion, both industries are very important and we should learn how to patronise good insurance firms. Some gave up on insurance because of their bad experience with an insurance firm.
The best thing is to do your research and find a nice insurance firm that will take care of your financial losses if you have any problems in future.
Numerous insurance policies are available from insurance firms to protect people and businesses from financial damages caused by accidents, robbery, diseases and other unexpected circumstances.
Thank You All For Reading
Posted Using LeoFinance Beta
I believe that saying not to trust is not a good excuse for not protecting yourself.
Obviously the insurance agencies will look for a profit, but there are so many that there will always be something convenient for us too and it is important to protect ourselves from any accident.
As in everything, I believe it is necessary to study, evaluate all the hypotheses and then choose which agency to rely on.
Nice post!
You are very right my friend. We should always find the standard firm that will be responsible for our losses (that's if there are any in the future.
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