What do you mean by insurance? Insurance is a contract between an individual or an entity (such as a business) and an insurance company, in which the insurer agrees to provide financial protection against certain risks or events. In exchange for payment of a premium, the insurance company agrees to cover the policyholder for potential losses or damages.
There are various types of insurance policies available, covering different risks such as health, life, property, liability, and more. For example, health insurance provides coverage for medical expenses, while life insurance provides financial support to the family of the insured in the event of their death.
The purpose of insurance is to mitigate financial risk and provide peace of mind to individuals and businesses. By paying a relatively small premium, individuals and businesses can protect themselves from potentially devastating financial losses that could result from unexpected events or risks.
There are kinds of insurance
Life insurance is a contract between an individual and an insurance company. It provides financial protection for the beneficiaries of the policyholder in case of their death. In exchange for regular premium payments, the insurance company agrees to pay a death benefit to the policyholder’s beneficiaries upon their passing.
There are two main types of life insurance policies: term life insurance and permanent life insurance.