What is Insurance and why this is important?

 

Insurance is a legal process between two parties the insurer and the insured, insurance is the most important financial tool. It can help you live life without any financial worries knowing you will receive financial benefits when you faced some losses. 

An insurance agent is a great resource to learn more about insurance. They provide information on detailed benefits of insurance. 

Features of Insurance Coverage -

• It is a risk management plan to protect against unexpected losses.
• Insurance coverage does not mitigate the magnitude of any loss one may face. It only assures that the loss is shared and distributed among multiple people who are under insurance.
• Various clients of an insurance provider company pool in their risks. Hence, they pay the premiums together. So when one or more incur financial losses, the claimed money is given out of this fund. This makes each client bear some nominal fee.
• Insurance coverage can be provided for health expenses, car damage, business losses, property loss or damage, etc. depending on the type of insurance.

Some Types of insurance -

• Life Insurance
• Health Insurance
• Education Insurance
• Property Insurance
• Vehicle Insurance
• Travel Insurance
• Business Insurance