Introduction Insurance plays an important role in protecting our investments. It helps to safeguard investments, serving as a safety net. Insurance is valuable because it guards against accidents and risks, providing compensation for the losses that might occur. Consequently, insurance offers a sense of financial security, acts as a risk management tool, and it promotes long-run investment growth. Financial Security Insurance provides financial security, which is a sense of safety in terms of the inflow of funds. It guarantees compensation for the losses that occur, and it provides compensation for the damages that occur due to an unwelcomed event. Whether is it property, health, or life insurance the policies insure that individuals and businesses will be secure from large financial losses. In the instance where an earthquake occurs and a building falls to the ground, property insurance will cover the cost of repairs, or replacement and it will deal with the loss of the in come from the apartments. The financial security that individuals and businesses receive will allow them to protect----and without financial security, the confidence that is needed to go forward with an investment will have never been achieved. Risk Management Given the fact that investments are faced with uncertainty and risks, insurance manages risks and creates a way for investors to mitigate all of the uncertainties. The risk is transferred between the investor and the insurance company, and the investor is allowed to carry out the plan for investments rather than seeking for ways to keep the money that is invested. For example, in the stock market, investors use options to protect their portfolios by buying put options or by buying insurance on the index in order to protect their investments, so as to make sure that a loss that amounts over a certain percent of the investments will not be suffered. While insurance alone cannot protect investors from everything it does make the path to their long-term investment easier. Long-Run Investment Growth Life insurance plan or an annuity as an insurable policy, is a policy that an investor invest money into with the expectation or receiving a huge sum of money during the retirement years. It helps in increasing long-run investment growth because it maintains cash and protection against unplanned circumstances that happen. The insurance policy the needed amount of money that is needed will be given to you guaranteed. This way you will be able to receive continued income from an annuity for the rest of your life for any emergency needs that may happen. This also helps not to throw off the long run growth if the investor gets a hold of all of the money but a certain amount comes in each year. Counter Argument Insurance premiums is an additional burden for you financiallys, and can create a decrease in investment returns. Insurance is expensive but, the potential loses that can be suffered if insurance is not paid publicized far out way the cost, so insurance is always worth it. Furthermore, the insurance premiums should be seen as an investment in mental health, like your own home. It allows people to work efficiently their investments and it allows them to avoid their normal daily stresses that would occur if they did not have the insurance and they would have lost their investments. Conclusion In conclusion, insurance is one of the most important assets to an investor, in order to safeguard investment. Financial insurance security allows individuals and businesses to work efficiently in the needed funds. Unlike the assistance of insurance there is no way to make sure that the needed amount of money will be given to cover the loss that has occurred due to an accident or a natural even that sends you also to the hospital with no insurance on the hospital so in the end the patient will have to pay the large amount of money. But people feel safe in the fact that they will recover from anything that happens to them because, they have insurance to help them through whatever needs to be taken care of. Lower risk equals higher return and greater stability in the environment in which an investor invests. Life and annuities guarantee an investor that, they will have money saved up for retirement and the investments that are ongoing if something happens they know that they will be getting paid. Therefore, it is only to the advantage of the investors that they receive an insurable policy.
