What is insurance?
Insurance is a contract between an individual and an insurance company. The individual or entity (the policyholder) pays a premium in exchange for the insurance company’s promise to pay a specified amount of money in the event of loss or damage.
The purpose of insurance is to protect the policyholder from financial loss due to unforeseen events, such as accidents, natural disasters or illnesses. Insurance can be purchased for a wide range of things, including cars, homes, health and businesses.
What can insurance cover?
Insurance can cover a wide range of things, depending on the type of insurance you take out. Some of the types of insurance include:
Automotive insurance
Homeowners insurance
Health insurance
Life insurance
Business insurance
Travel insurance
Pet insurance