What Are the Benefits of Insurance to Society?
Although many forms of insurance are optional, some are mandatory. In most states, you can’t drive without insurance, and even in states where you can, you’ll have to demonstrate the ability to pay if you’re responsible for damages or injuries to others. However, with health and life insurance, you have the choice. When people go uninsured, it still impacts society as a whole.
Generally speaking, insurance protects you and your bank account. If you get sick, for instance, having insurance will ensure you get the medical care you need without emptying your savings. In 2016, the average American spent $10,000 on health care – a figure that is expected to increase to nearly $15,000 by 2023.
In addition to making sure you can handle a visit to the emergency room, insurance can also protect your loved ones in the event of your death. Life insurance will help pay for funeral costs, as well as provide a cushion that can help pay your family’s mortgage and other living expenses after you’re gone.
Businesses have access to commercial insurance that provides liability protection. If your company designs a product that harms consumers or someone slips and falls on your business property, for instance, the right kind of liability insurance will take care of that person’s medical bills and other related costs.
However, the role of insurance in business is mostly to protect your own bottom line. One lawsuit could put you out of business, so having the right coverage in place is essential to survival. You can also put coverage in place that keeps your business running after a natural disaster or a serious data breach. This type of business continuity insurance could mean the difference between surviving and growing into a thriving business or shutting your doors forever.
Although individuals generally get insurance for self-serving reasons, the importance of insurance for society as a whole can’t be understated. Hospitals are required to treat uninsured patients who come through the emergency room, writing off the cost as a loss. As a result, the costs of services go up, which increases insurance premiums for everyone.
Business insurance also serves a greater purpose. Although the government has checks and balances in place to keep consumers safe, if a particular product slips through the cracks, insurance will help pay the costs that come with an injury or death. If you slip while shopping at the grocery store and break a bone, that company’s insurance will prevent you from having to pay your deductible. As a whole, the insurance that protects businesses also keeps them going, and the more successful businesses there are for your shopping and dining enjoyment, the more money you can spend, thus strengthening the overall economy.