WHAT IS INSURANCE?






Insurance is a financial product designed to protect individuals, businesses, and organizations against potential financial losses caused by unexpected events, accidents, or risks. It works by pooling the resources of a large group of people who pay premiums, and then distributing the financial burden among them when someone experiences a covered loss.

In simpler terms, insurance provides a safety net by transferring the risk of a significant financial loss from the policyholder to the insurance company in exchange for regular payments, known as premiums. The insurance company evaluates the risk and sets the premium accordingly. If an insured event occurs, the insurance company covers the agreed-upon portion of the loss, as stated in the policy.

There are various types of insurance, including life, health, property, automobile, and liability insurance, among others. Each type is designed to protect against specific risks and provide financial protection to the policyholder.







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