Barter Exchange

Today, money is such a familar and pervasive part of our lives that we hardly stop to think about its origin and nature. But we are very much aware that money is important. Anyone including children quickly learn that a piece of paper painted and printed in green color background is the hundred rupees. It is important to know that such papers are valuable because they are money that can be used to buy things. We work for money or express our interest to sell our goods for money. That is money used to buy real things. But in the past real things were used as money. In other words rice,cattle,goat, vegetables or livestock or gold and silver were used as money. People operates transaction without money of any sort. Therefore, a question arises why money is innovated as a useful instrument for exchange of goods and services.

Insurance reduces Inflation

Many people don not know what inflation means.Inflation is a term meaning decrease of price in goods and services. It is a economic term used frequently to describe country economic state. Every citizen of a country will be experiencing this when economic condition is decreased. To control the inflation what government often do is decrease the volume of money in the market. Insurance reduces inflation because insurance companies takes money from people in the form of premium which then reduces the volume of money in the market.

Insurance creates employment opportunities

Another benefit or say importance of insurance is it creates an opportunity for job and employment. Insurance companies need employers with different educational background and skills and experience. Thereby people can apply in those companies and hence space for employment is created. Hence insurance is important to community.

Helps in Mantaining Standard of Living

Social insurance provides sufficient fund for the maintenance of living standard of person by ways of unemployment insurance,accident insurance etc. As a consequence the living standard of people
in the community will not be affected.

Safeguard to Wealth

Different programs are conducted by insurance companies in order to bring changes in the behavior and feelings of people living in the society. It helps to overcome social evils, riots, violent acts etc in the community. Therefore protection and security to society and theirproperty is brought by insurance.

Importance to the community

Here are the points why insurance is important to community:
1.Safeguard of Wealth
2.Helps in Maintaining Standard of Living
3.Creates Employment Opportunities
4.Reduces Inflation