What do u know about insurance?

What is the importance of insurance?

Buying insurance is important as it ensures that you are financially secure to face any type of problem in life, and this is why insurance is a very important part of financial planning. A general insurance company offers insurance policies to secure health, travel, motor vehicle, and home.

What is the basics of insurance?

The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange for that protection on that uncertain future occurrence.

What is insurance simple words?

In the simplest terms, insurance consists of you the customer paying a company a monthly fee to protect you from the risk of financial loss. You can purchase insurance policies for a variety of risks, but the most common are auto, home, life, health, and business.

What are the benefits of insurance to society?

Importance of Insurance to Society

  • Protects society’s wealth. Through various types of insurance schemes, the insurer protects the wealth of the society. …
  • Removes social evils. …
  • Maintains standard of living. …
  • Social security benefits. …
  • Equitable distribution of loss.
IT IS INTERESTING:  Who has bumper to bumper warranty?