Insurance
insurance is the protection provided to a person or business against certain risks. There are different types of insurance like health insurance, car insurance, property insurance and many more.
Insurance can be defined in many ways. It's a contract between an individual and an insurer that covers the insured from risk or loss. In return for this agreement, the insurer charges premiums.
In the simplest terms, insurance is a bet. When you buy an insurance product, you are betting that the thing you're insuring against - like your house - will happen, and then paying a fee for that bet.
The first recorded instance of someone buying insurance was in Ancient Rome during 6BC. This is where we get the word "assurance" from: literally meaning "to give assurance."
There are two types of insurance products: life and non-life.
—
Insurance is a type of risk management used to protect oneself from the financial loss.
It's a way of spreading the risk among many people who are affected by it. For example, an insurance company may cover your car or your house during a natural disaster with you paying an agreed upon premium in return.
Insurance is designed to mitigate the risk of potential problems arising from uncertain events such as injury, illness, disability, or death.
—
The term ‘insurance’ is derived from the French word ‘assurance’ which means ‘to give security to.’
Anecdotally, the idea of insurance was created in ancient Greece when a potter accidentally left a pot on a fire for too long, and as a result was unable to provide for his family.
As such, insurance became a contract between two parties in which one party pays an agreed amount of money to the other party, who agrees to use it in the event that something unforeseen happens.
—
Insurance is a type of protection that insures against the risk of loss. There are many different types of insurance, each covering a different type of risk.
This section will focus on auto insurance, which is a type of insurance that covers the risk that someone may be harmed or their property damaged as a result of an automobile accident.
To understand more about what auto insurance is, we should take a look at what these risks entail. This way, we can better understand why and how auto insurance works to protect drivers from these possible accidents caused by cars and other vehicles on the road.
—
Why we need insurance?
People often neglect the importance of insurance in their lives. It's a vital part of protecting your life, your family and your finances.
Insurance is a type of risk management that helps protect you from financial loss. It can provide protection for both physical and emotional loss that could occur as well as cover you in the event of death or an accident.
—
Insurance is a type of safety net for a variety of financial risks. It provides protection against the human errors that we can’t predict.
There are two types of insurance-life and property. Property insurance is recommended for people who have their own home or rent an apartment. Life insurance is recommended for people with dependents who would be financially reliant on them in the event of death.
There are three parts to an insurance policy: the premium, benefits and exclusions (elements that are not covered). The premium is an ongoing payment, but it may not be paid in one lump sum, as with some life policies. Benefits are what you get in return for paying your premium, such as coverage against theft or accidental damage to your property. Exclusions describe what you will not receive coverage
—
In this day and age, we are dependent on many things to make our lives easier. If you want to live a good life, you need to be insured for the unexpected. Just like someone who is driving around with no car insurance, if something happens and they get in an accident they will have to pay for it out of pocket.
We should be prepared for the worst by getting insurance. Even though it might not seem like a lot upfront, it will end up saving you time and money in the long run.
0 Comments