Pros and Cons of PE Insurance

PE insurance is temporary coverage for ambulatory prenatal care. It associated with all the care and services associated with the delivery of the baby apart from the in-patient services.

It ensures people from certain risks that may occur leading to loss or damage. It helps people maintain high living standards even after the risk has occurred.

Pros and Cons of PE Insurance

Pros of PE Insurance

  1. Protects liabilities

The insurance company protects against several risks and in case they occur they come in to compensate the insured.

  1. It deals with cash flows uncertainty

They come in to help when there is a loss hence makes the insured avoid getting the money directly from his or her pocket to pay for the loss.

  1. They offer loans

Through the premiums that are paid to the company, the insured can get a loan from other financial institutions using it as a security.

  1. Improves the economy of the country

The company collects premiums from both life and non-life policies. The amount collected can be invested in other areas such as trade and agriculture hence improving the economy of the country.

  1. Facilitates international trade

This makes it easier for the exporters to trade as they have insured their business hence international trade is facilitated among the nations.

  1. Creates employment opportunities

The insurance companies need professionals like accountants and salespersons and this creates room for many people to be employed hence improving their living standards through the money they earn at the end.

  1. Sharing of risks

Insurance allows people to share their risks and this makes people have confidence in their day to day operations as they know that in case of a loss they will receive compensation.

  1. Economic protection

The people insured are protected against risks that may occur hence it makes the economy to be stable as there will be compensation in case there is an eventuality.

  1. The patient can gain from short term coverage

As the patient will be offered help immediately, he or she will gain from the coverage as he or she will not have to pay for the services offered using cash means.

Cons of PE Insurance

  1. It requires knowledge

For one to take a certain type of insurance, he or she requires knowledge in the field for him or her to understand terms and conditions that may be followed for the compensation to be made in case of an eventuality.

  1. It is expensive

As it is expensive it may limit people who earn low as the premiums to be paid per month will be high hence it only allows a certain class of people to use.

  1. Highly taxable

The amount the insured pays is highly taxable by the government and this makes them receive a very low amount compared to the amount they pay hence not encouraging people to have the policies.

  1. Less compensation amount

The amount that is compensated to the insured in case of an eventuality is always less and this discourages people from taking the cover.

  1. High premium rates

The premium rates are high and this makes the people who earn little amount not able to take the cover.

  1. Increases the crime

The robbers may attack the beneficiary and this may make people fear to take the cover as they may be subjected to killing by the malicious people in the society.

  1. Takes long before compensation is made

The PE insurance takes long before the compensation is made due to the legal formalities that have to be followed hence making the insured feel like a waste of money and time.

Summary

PE insurance has helped members of the society as they can run their day to day programs freely as they are sure that they will be compensated in case eventualities happen in their lives. It also allows people to save as the money can be used as a security to take a loan which can be used to invest in other sectors.

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