Well, you are wondering why you have to take insurance. You might not be alone. Many people tend to ask this question not until they get to lose some investment. Click here http://www.uklandlordinsurance.com and you will get an idea on why insurance is important. In life, we are faced with a number of risks. Who knows what will happen tomorrow? For those who believe in some faith, they say that only God knows tomorrow. Our lives are of great value but we can never tell when we shall die. You have seen what happens in most situations when a bread winner happens to die. The family suffers if there was no insurance in existence. We now do not even need to explain why insurance is important because you already have the answer.
Insurance is the only sure way we can be at peace with ourselves. If you do not want to keep worrying about tomorrow and live one day at a time, then transfer this burden to a party that is willing. Insurance companies accept to worry about tomorrow on our behalf. As much as insurance is a business and every business is out there to make money, insurance is a necessary evil. The company accepts to take up the risk for a consideration. The insured will pay some premiums in order to qualify for compensation once the loss occurs. These premiums will depend on the type of risk you are insuring against as well as the period of the cover among other factors. This means that it will vary from individual to another.
Insurance companies therefore make money by encouraging people with the same risk exposure to come together and pool resources. It is obvious that not all of them will seek compensation at one single point. The company therefore invests the surplus not used in compensation in securities and therefore earns returns.