Which of the following is a benefit of having insurance?

Having insurance primarily provides protection from significant financial loss, which is crucial in managing risks associated with unexpected events. When you have insurance, you're essentially transferring the financial burden of potential losses (like medical expenses, property damage, or liability) to the insurance company. In the event of an incident such as an accident, illness, or disaster, your insurance coverage can help cover costs, thereby safeguarding your financial stability.

For example, if you were to face a serious health issue or a car accident, the medical bills or repair costs could be incredibly high. Without insurance, you would be responsible for these expenses out of pocket, which could lead to financial hardship. Insurance helps mitigate this risk, allowing you to navigate unforeseen events without depleting your savings or incurring debt.

The other options presented do not accurately represent the benefits of insurance. For instance, insurance cannot guarantee perfect health, as its purpose is to provide financial support rather than ensure wellness. Additionally, having insurance does not guarantee loan approval, as lenders consider various factors beyond insurance status. Lastly, while certain types of insurance, like life insurance, can contribute to long-term financial planning, they do not serve as immediate retirement savings vehicles. Thus, the protection from significant financial loss stands out as the primary