What is Insurance?

Insurance is a contract between an individual or entity (the policyholder) and an insurance company. The policyholder pays a premium to the insurance company in exchange for financial protection against specific risks or losses. If an insured event occurs, such as an accident, illness, or property damage, the insurance company provides compensation to cover the financial losses according to the terms of the policy.

Types of Insurance

1. Health Insurance: Covers medical expenses and sometimes includes preventive care services.
2. Life Insurance: Provides a payout to beneficiaries upon the death of the insured person.
3. Auto Insurance: Covers damages to vehicles and liability for injuries and damages to others caused by the policyholder.
4. Homeowners Insurance: Protects against damage to a home and its contents, and may also cover liability for accidents that occur on the property.
5. Travel Insurance: Covers trip cancellations, lost luggage, and medical emergencies while traveling.
6. Business Insurance: Protects businesses against losses due to property damage, liability, and other risks.