The Importance Of Insurance For The Financial System Of Every Country Essay

Risk of financial ruin is an important factor of having insurance. You Might face some health problems in later months like a sudden accident, cancer, diabetes, kidney stones or a car accident, this will leave with staggering medical bills. And not paying

Benjamin Franklin helped to establish in 1752, what it would be the first mutual insurance company. For many years, the United States government never considered necessary to incorporate a system that would compensate their citizens in case any injury, accident or loss happen to them. It wasn’t until 1735 the first underwrote fire insurance company was created; in Charleston, South Carolina. Underwrite insurance companies are the ones, that analyze all the risk of insuring a particular person or asset and uses that information to set a premium pricing for insurance policies. But it took 20 years to create the first mutual insurance company, one in which policyholders would come together to share the risk.

This report is gives a look at numerous factors affecting healthcare and how a lack of insurance has implications to not just the individual, but society as

Insurance is a critical part in the health care of Americans that would use it for life threatening, unaffordable and spontaneous health issues. But instead insurance has created substantial problem because it is being utilized as a payment system for everyday primary health care and not to cure

The subject of insurance and how heavily the government can mandate it or not mandate it is a constant struggle in politics. There is always the question of “what kind of relationship should the government have with its people and what role should it play with businesses?” Currently, a popular subject is the Affordable Care Act (Obamacare) and it is challenging the boundaries by requiring people to have health insurance and requiring businesses to offer health insurance to everyone and anyone. Mandating insurance is a hot button subject in other areas too that we will discuss like auto insurance, workers’ compensation insurance, and professional malpractice insurance.

In America, we not only have the problem of the non-insured but the under insured which causes just about as much problem as the underinsured. Each group has contributed to the vast growing cost of healthcare. Over the last decade or two, the amount of uninsured has risen due to the job market in the economy and the fact that most insurances are tied to employment, which is also a problem as the unemployment rate rises. The purpose of this paper is to explore this issue.

"Insurance is a legal contract that protects people from the financial costs that result from loss of life, loss of health, lawsuits or property damage."(Nielson.) This protection is given to the customer in exchange for a monthly payment to the company. This is a legal contract which is known as a policy, binds the customer to the insurance company for the duration of the policy. Insurance, whether it be life, health or auto, helps customers feel safe from everyday risks that can happen in life. Most insurance is optional, although some states enforce a law that automobile insurance must be purchased in order to register a car. Automobile insurance is very important. It helps the policy holder to protect their car

Secondly, John Goodman shares his defining moments of the current methods of insurance payers and how they work:

Health insurance is essential in order to assist in paying for hospital and clinic visits. Without health insurance cost would be astronomical and people would not be able to afford health care. Blue Cross/ Blue Shield and Health Maintenance Organization, were some of the many insurance companies widely used before the Affordable Care Act. Although health insurances existed, many individuals and families were not able to afford them due to the increase in the cost of health care. New research over the years has enabled the creation of new medicine and technology in our practice. This leads to services being more expensive for individuals, which raises the price of insurance.

For example if you don’t have insurance and you get hurt do you really want to walk it off ? Or are you really going to get help from a un professional athlete trainer ? I do not think anyone would like to face that. That's why it is better to have your insurance and have a professional athlete take care of

- If you don’t have insurance you might have a accident and then you will have a bunch of expensive bills to pay for not having insurance. If you have children , if you die your insurance will go to your child but if you don’t have insurance your children will be left without any

As a “comprehensive major medical insurance policy,” the Dumonts’ coverage includes basic health insurance for hospital, surgical, and physician expense needs, as well as major medical expense coverage. The latter is very important to extend the basic coverage to protect the Dumonts from the financial effects of a catastrophic illness or accident. The policy has a very adequate lifetime cap of $3,000,000 per insured. The Dumonts should continually analyze the health plans from both employers to determine which offers the best overall plan. But, the annual coinsurance, stop-loss amount, and family

Today’s society, many people have health insurance through the company where they work. Depending on the company policy full -time workers receive a full coverage of health insurance. On the other hand, those as part time receive half or nothing at all. The communication between the health provider and workers about health insurance sometimes ends with an enormous problem. Because what the company said to the beneficiary and the health providers’ policy are totally different. But having health insurance is very important because uninsured people receive slighter medical care. It is significant to have one because in life, no one concoct to get sick or hurt. It is not something that a person wants to happen. But the unexpected one can occur where people may come to face challenges that would constrain them to choose between life and death. In this case, infrequently, people act violently in order, to save their beloved when feeling helpless. Because of this issue of health care that people are facing every day that John Q’s movie is given to our analysis. The movie is a perfect example because it relates to our course materials such as moral, values and ethical issues, etcetera.

The reason for life insurance is to safeguard the most valued asset a young investor has, human capital. The investor is protecting his future earnings against lifetime uncertainty. In the event of passing away, the insured’s heirs or dependents will be given a sum of money to replace the wages he provided. Commonly, policies are bought to hedge against the mortality risk, “so human capital affects both optimal asset allocation and demand for life insurance.” Mortality risk is hedged by life insurance because the more human capital an investor has, the more life insurance he will need. This is perfect because of the negative 100 percent correlation the consumption (alive) and bequest (dead) state have with one another.

Insurance is a federal subject in India. It is a subject matter of solicitation. The legislations that deal with insurance business in India are Insurance Act, 1938 and Insurance Regulatory & Development Authority Act (IRDA), 1999. Insurance is defined as is a form of risk management primarily used to hedge against unforeseen risks of contingent losses. Another approach to Insurance is as the equitable transfer of risks, or the possibility of occurrence of losses, from one entity to another, by the method of diversification in exchange for a premium. An Insurer is a company designing, promoting and selling insurance products and services amongst the public. An insured or policyholder is the person or entity purchasing these products and services.