What is insurance?
Insurance is a financial arrangement that provides protection or compensation against specified risks or losses. It involves the transfer of risk from an individual or entity to an insurance company in exchange for the payment of a premium. The basic idea behind insurance is to spread the financial burden of potential losses among a large number of policyholders.
How do Insurance work?
Policyholder: This is the person or entity that purchases an insurance policy. The policyholder pays a premium to the insurance company.
Insurance Company: The entity that provides the insurance coverage. It collects premiums from policyholders and, in return, agrees to compensate them for specified losses or risks.​​
Premium: This is the amount of money the policyholder pays to the insurance company at regular intervals (usually monthly or annually) to maintain the insurance coverage.​
Premium: This is the amount of money the policyholder pays to the insurance company at regular intervals (usually monthly or annually) to maintain the insurance coverage.​
Coverage: This refers to the specific risks or events for which the policyholder is protected. Common types of insurance coverage include health insurance, life insurance, property insurance, and liability insurance.
Claim: If a covered event occurs, the policyholder can file a claim with the insurance company to receive compensation for the losses or damages.
Types of Insurance
Life Insurance
Life insurance is a type of insurance that provides a financial benefit to designated beneficiaries upon the death of the insured person. The purpose of life insurance is to offer financial protection and support to the deceased's dependents or beneficiaries, helping them cope with the economic impact of the person's death.
Health Insurance
Health insurance is a type of coverage that pays for medical and surgical expenses incurred by the insured individual. It provides financial protection against the high costs of healthcare, helping individuals manage their medical expenses and access necessary medical services.
Auto
Auto insurance is a type of insurance coverage that provides financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could arise from incidents involving a vehicle.
Liability Insurance
Liability insurance is a type of insurance coverage that provides protection against claims resulting from injuries and damage to people or property. It is designed to cover the policyholder's legal responsibility (liability) for bodily injury or property damage caused to others
Insurance helps individuals and businesses manage the financial impact of unexpected events, such as accidents, illnesses, property damage, or death. The insurance industry offers a wide range of products tailored to different needs and risks.