What is insurance and why insurance?

Life insurance

Insurance-PackagesWhat is insurance?
A promise of reward for specific possible future losses in conversation for a broken payment. Insurance is considered to protect the economic happiness of an individual, company or other thing in the case of unforeseen loss. Some forms of insurance are required by law, while others are elective. Approving to the terms of an insurance policy creates a contract between the insured and the insurer. In argument for payments from the insured (called payments), the insurer agrees to pay the policy holder a sum of money upon the incidence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest.
Why insurance?
Insurance is a system of managing risks. When you purchase insurance, you handover the cost of a potential loss to the insurance company in argument for a fee, known as the premium. Insurance companies finance the funds definitely, so it can grow, and pay out when there a claim.

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