Insurance has many effects along with it, some of them good and some of them bad. There are many effects from Insurance because insurance encompasses such a wide variety of aspects in any modern economy. It’s almost impossible to know somebody that doesn’t have insurance on at least one item and you yourself probably have at least a few active insurance policies. The most obvious effect of insurance is that it allows people to purchase large, expensive items with confidence. Imagine living in a world that didn’t have insurance, you would never see anybody driving expensive cars or owning expensive homes, and you would probably see many people getting sick because they wouldn’t have insurance to go to the doctor. Another positive effect of insurance is that it helps people cope with catastrophes. When somebody’s house is destroyed by a fire or a tornado, people can rest easy because they will most likely get a new house because of the insurance. The same is true when a loved one passes away, money is awarded to help ease the suffering and pain caused by the death. There are also negative effects associated with insurance. The most common type of negative effect is insurance fraud. Insurance fraud is when people try to make false claims in an attempt to game the system and earn get illegitimate insurance payouts. Insurance fraud causes many moral and ethical dilemmas. Insurance companies also are sometimes accused of being greedy themselves. For example, if somebody has an honest claim regarding their car, some insurance companies will fight the claim in court, which essentially means the car owner must pay the damage of the car out of pocket. This has sometimes earned insurance company’s bad reputations because of this fact that they are considered greedy.Tweet
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