Insurance

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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