Insurance is generally a financial coverage for the losses which is beared by the person under certain circumstances or we can say that it is a legal agreement between two parties, the two parties include 1) insurer 2) insured .
Insured is defined as the person who is covered against risk while insurer is the company that is providing coverage.
In simple terms if any bad things happen to the person at any time where he/ she is not aware about the situation and not having that much amount or we can say he or she was financially weak then this insurance will help them in her bad situation or mishappening.
What is the importance of insurance?
Insurance help the society for managing their economic growth. Insurance develop financial institutions and reduce uncertainties by improving financial resources.
- It provide safety and society to the person in case of any sudden financial loss. It provide financial support to the person and reduce the uncertainties in business and human life . Let take the example that if any accident will happen to anyone’s life then this insurance will help to overcome from the financial loss.
- Some insurance plans will help in protecting the dreams of your child in terms of his/ her education. Insurances are make sure that your children are financially strong while pursuing their goals .
- There is one type of insurance that is home insurance which help a person when there is any damage to your home the this insurance will help you to get coverage for damages and pay for the cost of repairs, whichever is needed.
- It will help your family to maintain the stability of financial growth. If any unfortunate death to the sole earner will happen then the insurance will help to the other family members.
- Insurance will help in encourage savings. Everyone need savings in this generation. They saved money for the future needs which help in our education and in other events .
Types of insurance
- Health insurance – Health insurance are types of insurance policy that helps to cover the expenses done by the medical care .
- Property insurance – Property insurance gives you financial coverage against damage caused to your private property due to fire , earthquake and many other casualties.
- Travel insurance – This insurance covers the costs and losses which are incurred while traveling.