Insurance is a means of protection for a person or entity from financial loss.
Insurance means a contract that represented by a policy, in which an individual or an entity receives financial protection or reimbursement against the losses from an insurance company. Insurance is a form of risk management which is used to hedge against the risk of a contingent and both big and small financial losses.
Any entity which provides the insurance is known as insurance company, insurer, insurance carrier or underwriter.
Insurance is not provided free of charge. The insurance company promises to pay us a benefit or claim amount as agreed in the insurance contract upon the occurrence of an insurance event.
The price we pay for this insurance service is called the insurance premium. A person or entity that takes out an insurance policy and pays the premium is called an insured or a policyholder.
There are different types of Insurances. Some types of insurance we will study here are:-
- Life Insurance
- Health Insurance
- Motor vehicle Insurance
- Retirement Benefit Insurance
- Term Insurance
- Worker’s Compensation Insurance
- Shop and Office Insurance