Importance Of Insurance

Why is an Insurance Policy Important? Insurance is a system developed by mankind as a way of reducing the chances of risk in day to day living. The system began as early as the 16th century when the Babylonians developed the very first insurance transaction in paper. This early insurance transaction was for a loan. If a merchant gets a loan for his shipment, an additional amount of money should be paid in exchange for an assurance that loan will be cancelled in case the shipment gets lost. This had paved the way to the modern policy systems that the world is practicing today. All of these insurance systems run on one particular concept, to limit risk of loss in the future in exchange for money.

http://www.empowernetwork.com/realtalk101radio/blog/importance-of-insurance/