insurance
protection against possible financial loss
Insurance refers to a contract between two parties, an insurer and an insured, where the insurer undertakes to provide financial compensation to the insured in case of specified losses or damages in exchange for a premium paid by the insured.
The main purpose of insurance is to mitigate the risk associated with uncertain future events. Insurance is used to protect individuals, businesses, and organizations from financial losses due to accidents, illnesses, theft, natural disasters, and other unforeseen events.
There are various types of insurance policies available in the market, including life insurance, health insurance, home insurance, auto insurance, and business insurance. Each type of insurance serves a different purpose and provides coverage for specific risks.
Insurance companies assess the risks associated with the insured and determine the premium to be paid by the insured. The premium is usually determined based on factors such as age, health status, occupation, lifestyle, and the type of risks covered.
In summary, insurance provides financial security and peace of mind to individuals and businesses by protecting them from financial losses due to unforeseen events.
More Answers:
Understanding Insurance Policies: Types, Coverage and Benefits ExplainedInsurance Loss: Understanding the Claims Process for Natural and Human-made Events.
Understanding the Roles, Responsibilities, and Qualifications of an Insurance Agent