The importance of insurance

provides many jobs in the field of economic and social development. The
importance of insurance is shown as follows
a.   Increased
production efficiency
sends safety and reassurance to the faithful, whether for the owners of
projects or for those working in these projects, for the insurance commission
to bear the losses resulting from the realization of the pure dangers
transferred to it helps the owners of the projects and their administrators to
pay attention to developing the production and innovating the means that
increase production and improve its quality, which It leads to lower production
for workers in the project, having an insurance program that guarantees their
coverage from the various dangers to which they are exposed will work to create
and develop a sense of reassurance about their future and the future of their
dependents, and this will be reflected in increasing their productivity, which
leads them to increase their production and focus in their businesses
b.   Ensuring
the continuation of economic projects
insurance protection provided by the insurance contract to the insured is
represented in ensuring that he is compensated for the potential losses that
affect the subject matter of the insurance as a result of a certain risk
realized, the best guarantee for the continuation of the project and its
failure to stop work due to the loss it causes
provides the project with the funds needed to replace the damaged assets with a
new one, in addition to compensating the projects for the loss resulting from
the cessation of work and the loss of profits
c.    Preventing
violent fluctuations in the output of economic projects
enables projects to know the losses that they will bear in advance, which are
the installments that you pay in exchange for transferring the risks to the
insurer. This leads to fixing the losses for one period after another and thus
fixing the production expense. In the end, this results in gaining profits or
preventing violent fluctuations
d.   Life
insurance as a means of saving
companies say that life insurance is a method of saving money, and I disagree
with them because the purpose of insurance is not to save money to achieve
profits, but the goal of insurance is to avoid the risk of transferring this
risk to the insurance company in exchange for a premium to be paid to the
insurance company
example, among the dangers that make anyone who goes to insure his life is fear
of the risk of sudden death, and you have those who depend on them,
“parents, wife or young children.” Therefore, life insurance is
insurance against the risk of death and not insurance, meaning that the
insurance company will guarantee that you will live for a certain age, for
example, ages are in God’s hands
companies have a set of life insurance policies, but the documents that I
absolutely do not recommend are any document with a savings part, meaning any
life insurance policy is a savings away from it immediately. For more
information, I advise you to review this separate article titled Types of life
insurance policies and features And disadvantages of each type
e.   Financing
economic development plans
bodies in general, and life insurance bodies in particular, represent an
important source of financing that individuals and organizations seek to obtain
the necessary loans for them, and their role in this area exceeds only
commercial banks
surplus of life insurance bodies consists of the nature of the life insurance
contract, which is characterized by the length of the contract period and also
as a result of using the method of equal annual premium to pay the obligations
of the insured instead of the increasing natural premium, due to the increased
risk of death with age, and then the insurance agencies get premiums Much
greater than the normal premium in the early years of the contract and less
than the normal premium in recent years. Consequently, it is necessary to
reserve the increase in the first years installments in a special account
called the reserve and invest them in order to help them pay the installments
deficit in recent years
f. Supporting
Credit (Borrowing
is an important means of expanding the scope of credit (borrowing), as credit
insurance (borrowing) provides a great service to lenders and sellers in
installments by ensuring that they receive their full dues in the event of the
death of the debtor or buyer, and thus encourages the expansion of lending and
facilitates the process installment sales
addition to the above, some life insurance policies allow their holders to
obtain loans by guaranteeing the documents
I see that the idea of borrowing money with a life insurance policy is a defect
and not an advantage, because I mainly borrow my money that I paid to the
insurance company in installments and I do not borrow from the money of the
insurance company, so how do you make me borrow my money with interest ?, the
answer that the insurance companies tell us is that they will loan us our money
We paid at a rate lower than the bank’s interest, and these are the terms of
the contract
see that this is a partial division of any unjust division, and therefore I do
not recommend at all any life insurance document with a savings part such as
the life insurance policy or the savings insurance policy or the mixed
insurance policy, but I only strongly recommend the temporary insurance policy
and we have covered that in detail in a separate article I recommend By looking
at its great importance, it is entitled the types of life insurance policies
and the advantages and disadvantages of each type
g.   Insurance
performs important social functions in society

performs many social functions of society, the most important of which are

a.     Protecting vulnerable
classes in society from the dangers they are exposed to without having the
ability to protect themselves from them

has many benefits, either for individuals or society in general, including

1.   Achieving
the principle of cooperation between a group of individuals exposed to the same
risk, and securing their future by participating in bearing the risks that they
may be exposed to
2.   The
insurance helps maintain the wealth of the establishment by compensating it for
the losses that it may be exposed to as a result of the risk
3.    Insurance
helps to maintain the production capacity of the facility
4.    Provides
peace of mind for individuals
5.    Avoidance
of a large potential loss that could lead to paralyzing the life of the
individual and the elimination of his future if it occurred and he has no
insurance against the risk
6.    Insurance
provides protection and safety for individuals and companies alike by studying
the causes of risk and developing appropriate solutions and procedures to
address each type of risk
7.    Savings
insurance helps, represented by the accumulated premiums of insurance
companies, which help the family of a person after his death when life
insurance, for example
8.    Insurance provides a
great benefit to the national economy through insurance companies investing
their insurance premiums collected in public and private projects, through
loans that they provide to companies or individuals, which contribute to the
economic development of the country
9.    Insurance
makes it easier for individuals to obtain loans from banks, because most banks
are reluctant to grant loans to individuals for fear that they will not be
repaid upon their death, but when banks know that individuals who want to
obtain loans have a life insurance policy, they do not hesitate to give them
Loans, because they will be able to collect the loan from the insurance company
upon the death of the borrower

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