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Insurance provides many jobs in the field of economic and social development. The importance of insurance is shown as follows:
a.   Increased production efficiency:
Insurance 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 costs.

As 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:
The 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.

Insurance 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:
Insurance 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:
Insurance 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.

For 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.

Insurance 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:
Insurance 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.

The 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):
Insurance 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.

In addition to the above, some life insurance policies allow their holders to obtain loans by guaranteeing the documents.

Personally, 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.

I 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:

Insurance 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.


Insurance 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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