Insurance benefits society by allowing individuals to share the risks faced by many people. But it also serves many other important economic and societal funcitions. Because insurance is also available and affordable, bank can make loans with the assurance that the loan's collateral (Property that can be taken as payment if a loan goes unpaid) is coveres against damage. This increased availability of credit helps people buy homes and cars. Insurance also provides the capital that communities need to quickly rebuild and recover economically from natural disasters, such as tornadoes or hurricanes.
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