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The Purpose and Function of Insurance

Insurance is not meant as an ATM or piggy bank to store wealth until it is needed. In fact, most people would hope never to need to claim insurance benefits, because the most common precipitator of benefits claims is some sort of disaster, whether personal or more far-reaching. There are many purposes of insurance, but the predominant one is to avoid catastrophic financial liability in the future – and thereby ensuring peace of mind.

Legal Requirements and Protection Against Financial Liability