What is insurance?
Insurance is a contract. Typically, insurance is a contract to transfer certain risks of potential loss of life, property, or property in exchange for money. It is a legal agreement between the two parties. One party enters into an agreement with a guarantee that the other party will pay compensation. The other party is bound by the contract with the assurance of paying premiums at a fixed rate for compensation. An agreement between the first party insurer and the second party policyholder guaranteeing compensation and premium payment, respectively. In technical terms, risk management is a type of contract through which the insured ențity transfers the cost of potential losses to another entity in exchange for a small financial compensation. This compensation is called the premium. This is part of risk management to avoid unforeseen losses.
Life insurance is the insurance that is done on people's lives. Life insurance is a contract between the insurance company and the insured person where at the end of a certain period the insurance company promises to pay a certain amount to the insured or his family member after his death. In a word, it refers to the insurance that is taken out for the risk of life.
The great advantage of the insured is peace of mind. Because he knows that his family or heirs will not have financial problems after his death.
Remember that the insurance company has to abide by certain terms and conditions of the customer. If a war or suicide causes death, the insurance company will not pay any money.
- 2.Property/ Home Insurance