In Practical Finances (2023), we are reminded that we are not exempt from any eventuality or unexpected situation that affects our assets, our own well-being or that of our family.
We may have an accident, die, contract an illness, natural disasters, a fire, etc. These and other risks are examples of disasters to which we are exposed, which can occur at any moment; and if we have not protected ourselves, they can disrupt our peace and tranquility.
By taking out insurance we protect our life and assets. We will be sure that we or our family will not find ourselves in trouble when facing these eventualities because we have the support of the insurance companies we have contracted. By taking out insurance we have the guarantee that we will not use resources that we have saved with great effort in the past, or that we will not get into debt to get out of the pressing situation in which we find ourselves.
Insurance is the necessary means to cover the risks inherent in an eventuality or incident (Mapfre Foundation).
It is important to make sure because:
They reduce the impact of risks.
They bring peace and tranquility.
They help maintain harmony in the home.
They guarantee protection of health and assets.
What we can insure (GNP)
Transport (cars, motorcycles, boats)
Real estate and possible damages (house, buildings, facilities, land)
Medical services (care in case of illness or simple check-ups)
Our life
Child education
Savings and retirement (many insurance policies have this section)
Classification of insurance (Practical finance)
1. Personal insurance
They cover risks to which their physical integrity is exposed.
Life insurance - Compensates beneficiaries when the insured dies.
Personal accident insurance – Compensates the insured when they suffer an accident.
Health insurance – Covers the insured's necessary medical expenses (hospitalization, surgery, diagnostic and laboratory tests) to restore his or her health.
Funeral insurance - Covers funeral expenses in the event of the death of the insured.
2. Property insurance
They cover risks to which assets are exposed.
Agricultural insurance - Covers economic losses resulting from damage to crops or animals (climate changes or natural disasters).
Car insurance - Covers the vehicle against damage, theft or damage to third parties.
Home insurance - Covers damage due to theft, natural disasters, structural damage or contents where the insured lives.
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