单项选择题

Why We Need Insurance
Insurance is a cover used for protecting oneself from the risk of a financial loss. It is important to understand that risk is a part of any person’s life and that it increases as a person increases in age, responsibility and wealth. Throughout the living existence, everyone is faced by numerous risks--failing health, financial losses, accidents and even fatalities. Insurance addresses all these uncertainties on financial terms. Insurance is risk coverage against financial losses and should not be taken as an investment instrument.
Everyone needs insurance if they are worried about economic loss, or if they lose something. The purpose of insurance is to give them peace of mind. Having the right kind of insurance coverage is an essential part of building a solid financial future. Insurance protects people from risk and guarantees that, once they accumulate assets, they will be able to keep them. The basic definition of insurance is risk management. There are mainly two parties involved in this--the insurer and the insured. The insurer is the insurance company who will provide the cover to the insured against any financial losses. The insured may be an individual person or a group of people like an employer, members of a society, etc.
A policy is the contract between the insurer and the insured, which states the risks covered, the exclusions, if any, and the benefits reimbursed on the happening of an event like death, illness etc. The policy is paid through what is called a premium, which is a set amount that must be paid by the insured on a monthly, semi- annual or annual basis. On the happening of an event like death, disability, fire, etc., for which the insured is covered, the benefit amount stated in the policy contract can be claimed by the insured.
The way insurance goes is that the premium plus thousands or sometimes even millions of other people’s premiums go together in a big pool. The insurance companies use that pool. They invest it, and then they pay it when there’s a claim.
There’s property and casualty, and life and health insurance. Life and health insurance includes life, disability, health insurance, long-term care insurance. Property casualty insurance is a type of insurance that insures one’s home, auto, and airplane, things like that. Change is perhaps that only static constant within the dynamics of life and risks always move in tandem within a changing environment. Life insurance is more of a hedging mechanism rather than a real investment avenue. It is essentially a mechanism that eliminates risks primarily by transferring the risk from the insured to the insurer.
It is not that life and existence are constantly fraught with danger and uncertainty. But it is essential that people plan for the future. The chances for a fatality or an injury to occur to the average individual may not be particularly high but then no one can really afford to completely disregard his or her future. Insurance is the most reliable tool an individual can use to plan for his future.

According to the last paragraph, which of the following statement is NOT true（）