Mar 31, 2023 · To explain what insurance is in simple terms: it's a way to protect your loved ones, property, business and lifestyle from financial losses and unexpected costs. By paying an insurance provider, you receive coverage that will preserve …

In simple words, insurance is a risk transfer mechanism, where you transfer your risk to the insurance company and get the cover for financial loss that you may face due to unforeseen events. And the amount that you pay for this arrangement is called premium.

Insurance is a term in law and economics. It is something people buy to protect themselves from losing money. People who buy insurance pay a "premium" (often paid every month) and promise to be careful (a "duty of care").

Nov 26, 2024 · Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. There are many types of insurance policies. Life, health,...

In simple words, insurance is a contract, a legal agreement between two parties, i.e., the individual named insured and the insurance company called insurer. In this agreement, the insurer promises to help with the losses of the insured on the happening contingency.

In the simplest terms, insurance consists of you the customer paying a company a monthly fee to protect you from the risk of financial loss. You can purchase insurance policies for a variety of risks, but the most common are auto, home, life, health, and business. ... Insurer: The company that provides you the policy. What is insurance one word?

Jan 24, 2024 · In this comprehensive guide, we'll break down 50 common insurance terms and explain what they mean in plain, understandable language. 1. Premiums. When you purchase an insurance policy, you'll be required to make regular payments, known as premiums.

insurance pays for sth/covers sb/sth This insurance covers the cost of their mortgage but they are considering more life cover. Most insurances won't cover you if you take part in any dangerous …

Oct 21, 2024 · To answer the most common question, what is insurance? First, understand the literal meaning of insurance. It means an assurance against unforeseen and unfortunate loss. This means you can be compensated if you encounter an unfortunate event and incur a financial loss because of it.

Insurance is a financial safety net designed to protect you from unexpected losses or risks. It works on the principle of spreading risk among a large group of people. When you purchase insurance, you pay a regular fee called a premium to an insurance company.