"From my perspective as a depth psychologist, I see that those who have a connection with story are in better shape and have a better prognosis than those to whom story must be introduced. ...to have 'story-awareness' is per se psychologically therapeutic. It is good for soul." ~ James Hillman
One of the fundamental ideas of Jungian Psychology is that we do not so much create our ideas, images, and thoughts, as we are created by them. The ideas we have (or, more properly, that have us) have a determining effect on the way we experience the world. Ideas, images and stories are the lenses, so to speak, through which we see the world, and by which the world is shaped and colored.
The importance of story is not limited to Jungian theory. It is very well understood, for instance, in work with Trauma survivors. Studies have shown that writing the story of one's trauma can be healing. The following description of one set of studies performed on this approach comes from a blog on the Psychology Today website written by Art Markman:
"writing about these emotional events was very difficult for people. They did not enjoy the experience, and they found it painful. However, the long-term effects of this writing were fascinating. If you followed the people in these studies over time, they reported fewer illnesses, they went to the doctor less often, and they suffered fewer symptoms of depression in the future. They were less likely to miss work and school, and their performance at work went up. These effects lasted for months and years after writing."
He goes on to state that "The benefit is in creating a story that links together the emotional memories. Making these traumatic events more coherent makes memories of these events less likely to be repeatedly called to mind, and so they can be laid to rest."
I think that one of the things that makes Jungian Psychology unique is the understanding that our stories are primary. If the creation of a story can be healing in the case of trauma, having a relationship with story, or as Hillman calls it, "story-awareness," can provide a way of absorbing and metabolizing one's experience.
This enables the ongoing creation and negotiation of the meaning of events. It would not be too much to say that story-awareness can help prevent, or at least, lessen the psychic fragmentation and disorientation that can follow experiences of suffering.
One of my favorite quotes of Jung's is "Meaning makes a great many things endurable -- perhaps everything." We could equally say, in the light of Hillman's reflection quoted above: "Story makes a great many things endurable..."