Insurance
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Insurance
Description
Description
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 which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.What is insurance mean?
Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.
Insurance is a term in law and economics. It is something people buy to protect themselves from losing money. ... In exchange for this, if something bad happens to the person or thing that is insured, the company that sold the insurance will pay money back.
Insurance uses probability and the law of large numbers to determine the cost of insurance premiums it charges its clients based on various risk factors. The rate must be sufficient for the company to pay claims in the future, pay its expenses, and make a reasonable profit, but not so much it turns away customers.
Insurance companies invest the funds securely, so it can grow, and pay out when there's a claim. Insurance helps you: Own a home, because mortgage lenders need to know your home is protected. ... It covers your day-to-day costs and larger expenses like your mortgage while you focus on your health and recovery.
Insurance turn accumulated capital into productive investments. Insurance also enables mitigation of losses, financial stability and promotes trade and commerce activities those results into sustainable economic growth and development. Thus, insurance plays a crucial role in the sustainable growth of an economy.
An entity which 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 Role and Importance of Insurance – Explained!
- Provide safety and security: Insurance provide financial support and reduce uncertainties in business and human life. ...
- Generates financial resources: ...
- Life insurance encourages savings: ...
- Promotes economic growth: ...
- Medical support: ...
- Spreading of risk: ...
- Source of collecting funds:
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CREDIT
Credit is the ability to borrow money or access goods or services with the understanding that you'll pay later. Lenders, merchants and service providers (known collectively as creditors) grant credit based on their confidence you can be trusted to pay back what you borrowed, along with any finance charges that may apply. To the extent that creditors consider you worthy of their trust, you are said to be creditworthy, or to have "good credit." What Is Credit? How do you define credit? This term is broad with many different meanings in the financial world. Credit is generally defined as a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date—generally with interest. Sometimes, it may even involve crediting a 401(k), for instance. Credit also refers to the creditworthiness or credit history of an individual or company. It also refers to an accounting entry that either decreases assets or increases liabiliti
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