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In: Economics

why do consumers value insurance

why do consumers value insurance

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Expert Solution

Consumers use to go for Insurance to minimise the risks in life. When someone buy insurance, he/she pay the premium which is the potential cost of possible loss.

Insurance helps in these following domain,

Home: Insure theft, damage from fire and water etc.

Vehicles: Insure repairs, health care, injury. It is also a legal requirement.

Health Care: Insure health care costs like prescription drugs, dental care, vision care and other health-related issue.

Life Insurance: Insure family in the event of a death.

Child Education: Insure higher education.

Others:
Risk on running small business.
Retirement plans for employees.
Flight cancellations
Etc.

More or less almost in every block of life there are some sort of insurance. Consumer goes for it to secure their life and path.

Rahul Sunny answered 2 years ago
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