The other driver makes a liability claim against you for $750,000. 4). When it comes time to make a decision about personal insurance, it’s hard to know where to start. The following form allows you to search all of BT. Read the Product Disclosure Statement to see if this insurance is right for you. When you buy insurance, you're buying a promise. The Importance of Insurance for Risk Management New Businesses. You have until December 15, 2018 to enroll in or change health insurance for 2019. Leads to Early Intervention. But the little guys can't take a hit. Prepare for your best financial future – discover how our superannuation accounts can help you save for retirement. A general insurance company offers insurance policies to secure health, travel, motor vehicle, and home. When you look at your industry, you see the "big guys" and the "small guys." So it makes good sense to insure your greatest asset – you! Peace of Mind. Importantly, a health insurance plan is not just for oneself but for the entire family. But the federal government stepped in and required coverage in the name of keeping commerce moving. Workers' compensation is a form of compulsory insurance that's required in most states. Important additional car insurance coverage. It’s similar for a business. The Bank does not guarantee the insurance. Insurance is the required (by lenders) safety net that lets entrepreneurs explore opportunity. Having health insurance is important for several reasons. Live a peaceful life and manage your risks that you can face in everyday life. Personal liability is when a business owner or owners can be held personally responsible for injuries or damages that occur on the business property or during the course of normal business operations. A great example of this is auto insurance. Insurance is important because sometimes it's the law! If a risk goes wrong, the big guys will be able to survive. Its similar for a business. A lump sum death benefit can secure the financial future for your children and protect their  standard of living. In the case of the West, Texas, plant explosion, insurance could have helped a community to recover after a crisis. With insurance in place, you or your family’s financial stress will be reduced, and you can focus on recovery and rebuilding your lives. If your car is totaled in an accident or stolen, most car insurance policies will pay you the actual cash value of the car, which could be less than what you still owe on the loan. Insurance is important because both human life and business environment are characterized by risk and uncertainty. If a tornado takes the roof off your house, your homeowner’s insurance helps to replace it. As we move through life, find a partner, raise a family, and maybe start a business, the importance of insurance in a long term plan increases. Just because you don't have children or are married, doesn't necessarily mean that you don't need life insurance. But whether they think about insurance, with hope it's there, allowing for transfer of risk and providing a safety net for new opportunities. Tony (34) and Karen (33) recently upgraded to a new home to allow their twin boys Nicholas and Rocky (aged 4) more room to play. The use of business insurance is also important as a form of protection against personal liability. You should also consider obtaining personalised advice from a professional financial adviser before making any financial decisions in relation to the matters discussed hereto. No amount of money can replace your health and wellbeing – or the role you play in your family. You risk losing your driver's license and fines driving without it. HNI has offices. Discover the importance of insurance and why it plays a central role in your financial wellbeing, helping to provide financial security for you and your family when it's needed most. Insurance, of all kinds, is used to help protect consumers when certain things happen. This information does not take into account your personal circumstances. If enough little guys leave the industry (and one big guy swallows them up), you're left with a monopoly. Business owners can take on certain business ventures because they can shift the risk — thanks to insurance. Insurance plays a key role in mitigation of risks. It all goes back to the idea that insurance, when activated, makes policyholders whole again. Why is health insurance important even at a young age? Moreover, the benefits of expanding coverage outweigh the costs for added services. Investing can help you lay the foundations for your best possible financial future by growing wealth and building financial security. But nothing is more important than your life and your ability to make a living. Terms and conditions, and limitations and exclusions apply. In short, to get the money your business needs to keep going, it’s likely you enjoy the benefits of insurance. The benefit amount from a life insurance policy (how much money your policy is worth) could help a significant other maintain the lifestyle you led together, or help aging parents afford the care they need. Insurance is a safety net for when risks go wrong. Scott and Trish were happily married with two kids. Why Is Homeowners Insurance Important?. The benefits of insurance are discussed below: Benefits of Insurance to insured Now the city is suing West Fertilizer and likely will win all of the company’s remaining property and assets that were not damaged by the disaster. Why Is Insurance Important? This reason is the counterpart to No. At the End, I Don't Get Anything Tangible From My Purchase Secure … 2. The biggest benefit of getting into a health insurance plan early at a young age is that it takes care of waiting times associated with pre-existing This Thanksgiving, give yourself the peace of mind that comes with having health insurance. BT Protection Plans are issued by Westpac Life Insurance Services Limited ABN 31 003 149 157 (WLIS), except for Term Life as Superannuation and Income Protection as Superannuation which are issued by BT Funds Management Limited ABN 63 002 916 458 (BTFM) as trustee of the Retirement Wrap ABN 39 827 542 991. Insurance is tricky. The following scenario is illustrative only to demonstrate the importance of insurance and is not based on an actual event. No matter what your financial position is today, an unexpected event can see it all unravel very quickly. BT Protection Plans are issued by Westpac Life Insurance Services Limited ABN 31 003 149 157 (WLIS), except for Term Life as Superannuation and Income Protection as Superannuation which are issued by BT Funds Management Limited ABN 63 002 916 458 (BTFM) as trustee of the Retirement Wrap ABN 39 827 542 991. The couple needed to tighten their belts a little until Tony was back on his feet but they were able to keep up with their home loan repayments, which would not otherwise have been possible without their Income Protection cover. Your individual situation may differ and you should seek independent professional tax advice. © BT - Part of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714. Life insurance can support the life of a family, should a member be lost. Terms and conditions, and limitations and exclusions apply. Unforeseen tragedies such as illness, injury or permanent disability, even death – can leave you and your family facing tremendous emotional stress, and even grief. Protection Against Property Damage. Should a key member or piece of equipment go out of commission, the business can carry on, thanks to insurance. Thankfully, Tony’s Income Protection insurance meant he received a stream of payments equal to 80% of his regular wage (including super). Life insurance policies are important because they provide many options for debt repayment, income replacement and estate planning for your family. If you are young, married, there are Family Floater health insurance plans that fit the bill. WLIS and BTFM are wholly owned subsidiaries of Westpac Banking Corporation ABN 33 007 457 141 (the Bank). What it comes down to is that insurance helps prevent monopolies from forming. This is done by proactively DE-RISKING their business so they can be less dependent on insurance. 2 — lenders require insurance. For example, gap insurance provides coverage for people who have auto loans. Ideas and tips to help you to prepare for your best financial future. What’s more is the city also is suing the suppliers to the fertilizer plant, claiming they knew they were supplying inherently dangerous materials. When companies have small budgets, even having to buy a new laptop because a thief stole one from the office can be devastating. Let's back up and take a big-picture view of why insurance matters. Insurance is a safety net for when risks go wrong. If you get into a car accident and damage your car; auto insurance helps pay for repairs. You’re more likely to get the care you need, have shorter hospital stays and live a longer, healthier life compared to people without health insurance. In the event of a lawsuit or liability claim, without … Why is insurance important? View the BT Wealth Connect FSG. We live in a litigious society. Among other things, Insurance sector also encourages the virtue of savings among individuals and generates employments for millions, especially in a country like India, where savings and employment are important. Here are five reasons why this type of insurance is important. Let’s look at five key reasons. Buying insurance is important as it ensures that you are financially secure to face any type of problem in life, and this is why insurance is a very important part of financial planning. With insurance, however, the little guys have support if they want to take a risk, which means they stick around longer. This is because the fertilizer company did not have enough insurance. November 25, 2020 48 Views. Why insurance is important – real benefits for you and your family Discover the importance of insurance and why it plays a central role in your financial wellbeing, helping to provide financial security for you and your family when it's needed most. 5 Reasons why insurance is important. Sometimes, though, it's tempting to question the value of insurance because it is an intangible product. Lenders require that you have insurance. This information does not take into account your personal circumstances. HNI also offers the basic services of insurance and employee benefits.