Benefits of Insurance

The following advantages apply to the government, businessmen, and individuals who take insurance policies:

1. It provides an avenue for people in business to remain in business even after losses.

2. It enables a person in a business to fully concentrate on the business and worry less about the consequences of losing vital assets.

3. Insurance encourages savings. For example; endowment policy.

4. In the event of death, the dependents of an assured are being catered for.

5. Insurance policy agreements can be used as acceptable security in banks while requesting a loan.

6. Group insurance policy also serves as motivation for workers.

7. It also facilitates foreign trade most especially Marine and Export credit insurance.

8. Risks of ownership are minimised.

9. It serves as emergency funds in case of a breakdown in health.