In as much as we plan, life tends to throw us curve balls we did not expect. That is why even as we plan our lives, our personal finances and even our businesses, we also need to consider some of the bad things that can happen and put in place a mechanism to help us recover.
Insurance provides this type of protection as it ensures you won’t have to pay the full cost of a loss.
Why do people buy insurance ?
People buy insurance mainly to:
- Protect things of high value –such as a house, business equipment, household content, jewellery, – these things would be very expensive to replace
- Protect against disaster – such as flood, fire or accidents
- Protect against a liability – to provide financial protection if you are sued – for example, a customer could sue a business for injury while at the business premises,
What to consider when taking insurance
Choosing an insurance policy is a matter of identifying what is important to you, is it your family, house, car, business, your watch, laptop, camera e.t.c. Please note that it can be more than one thing that is important.