What do you mean by insurance?
Introduction
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity that provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder.
The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity that provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder.
The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss.
The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity that provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder.
The insured assumes a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss.
The loss may or may not be financial but it must be reducible to financial terms (e.g., if you lose $100 worth of possessions due to fire then your insurance company will pay up), and usually involves something in which you have some sort of insurable interest established by ownership, possession and/or pre-existing relationship
Takeaway: It is a kind of safety and security.
Insurance is used to describe any form of financial protection against the risk of loss. It can be provided in a number of different ways, such as:
life insurance, which offers benefits upon death to beneficiaries;
disability income plans, which pay benefits for injuries or illnesses;
health care coverage, which pays for medical expenses incurred by policyholders; and
property/casualty coverage (collision), with or without additional personal injury protection (PIP).
The term “insurance” is also used to describe the protection provided by other means. For example, a service contract purchased for a vehicle or appliance will provide protection against the risk of loss due to breakdowns or damage.
Insurance is a form of risk management, where the insurer (usually a company) agrees to provide financial protection against losses from a specific event. The insured receives money in return for the premium that they pay. This can be in the form of payments or benefits.
Insurance is one of the oldest forms of risk management. It is a means by which both individuals and businesses can hedge against financial loss due to events such as fire, theft or natural disasters. But in recent years, the term has come to encompass any form of financial protection against the risk of loss.
Conclusion
In short, insurance is a contract between two parties. The insurance company agrees to pay for your losses if something happens, and you agree not to sue them for that money. While this may seem like a good deal at first glance, it can backfire on you in several ways.
Comments
Post a Comment