Which of the following is essential for protecting people’s finances from large expenses or loss of income?InsuranceSavings accountsMutual fundsFixed deposits

To protect people's finances from large expenses or loss of income, it's essential to consider options that provide financial security and risk management.

1. Insurance: This is arguably the most critical option. Various types of insurance, such as health, auto, or life insurance, can compensate for unforeseen expenses or losses. Insurance policies are designed specifically to mitigate risks and provide financial assistance in emergencies.

2. Savings Accounts: While a savings account is important for building an emergency fund, it does not directly protect against large expenses or income loss in the same way that insurance does. It serves more as a buffer for everyday expenses.

3. Mutual Funds: These are investment vehicles rather than protective measures. They can potentially offer high returns, but they do not provide a safety net against immediate financial crises.

4. Fixed Deposits: Similar to savings accounts, fixed deposits offer a way to earn interest on funds that are set aside, but they do not offer the same protection as insurance for unexpected financial burdens.

In summary, while all options have their merits in financial planning, insurance is essential in protecting against large expenses or loss of income, as it is specifically designed to cover risks associated with such events.