What is insurance?

Professional insuranceDefinition : An arrangement or practice by which a government agency or company provides a guarantee to compensate for a specified loss, illness, damage or death as a return to premium payment. In economics and law, insurance is the form of risk management mostly used to prevent against a risk of an uncertain, contingent loss. It is defined as „equitable transfer of the possibility of a loss, to one entity from another, because of a payment. The insurer is the company selling an insurance; a policyholder, or insured, is an entity or person buying this insurance policy.
Faced with some unexpected accident, you will feel a want for security which won’t leave you begging for money at your worst. Any safety net or other type of protection is welcomed far better than having nothing at all.

Insurance, in simpler terms, means that you pay a sum to obtain protection or a leverage against a large magnitude incident. So, if the unexpected misfortune becomes reality, your insurance company steps in to help you sail out of the rough.

Insurance is in many types and forms. You can get life insurance, property insurance, liability insurance, etc. The protection is not just for you - people dependent on you for something. Property insurance is a protection procurement against damage to tge home items such as unexpected bomb shelling, floods, fire attack and other natural mishaps. All professional people like doctors, lawyers, are insured for the specific profession. Life insurance,eye and hair insurance, are other types of popular insurances.