Insurance exists to protect financial progress from events that cannot be predicted or controlled. It transfers risk from individuals to institutions.
The concept of risk transfer is clearly explained in Investopedia’s insurance and risk management guide, which outlines how insurance safeguards long-term financial stability.
Types of Essential Insurance
- Health insurance
- Life insurance
- Property and liability coverage
Common Planning Mistake
Many people focus on investing before protection, exposing themselves to catastrophic financial loss.
Conclusion
Insurance may not grow wealth, but it prevents financial devastation.