Why we need insurance

Why do we need insurance in our area? why do we want to secure ourselves? because we don't know what will happen next with us. May be I am driving a car and then suddenly another drunk driver hit my car, or if I am on the road and someone hit me not deliberately, but if it hits me then it will cause severe damages that will cause me bed rest, and during the time of bed rest who will bear my expenses? my utility bills and other expenses? its a big question, if you are an independent person or even if you are a family person and head of family then you will definitely think about it.

Insurance companies understand our worries about our future, that's why they offer their policies to make your future bright, but keep this thing in your mind that they do not deal in losses, they know that not all the people are in loss, or they have some kind of calculation regarding risk management. They know that if someone is paying his / her premium then he is paying right now, and the amount payable by him / her is valuable right now, just like a bank concept. 

Have you ever think about this situation? Bank give you monthly income upon your deposits. They have some restrictions just like insurance companies that you have some kind of time limit, that you shall not withdraw your policy or money from your account. This is because they play in market with our money, they have analysts, they know that how much market may collapse and how much rise. That's why they need liquidity and this is you who provide them that money at that time. If any person knows about financial market then he will understand this thing which I have mentioned here.

Insurance is a good thing, I am not telling that this is a bad thing, but I am shading some lights upon the ways that these companies use to make money with our money.