Insurance is a contract between an individual and an insurance company, where the individual pays a premium in exchange for financial protection against specific risks. But, what exactly is insurance, and how does it work? Let’s dive into the world of insurance and find out.
Definition of Insurance
Insurance can be defined as a financial product that offers protection against the loss or damage to assets, or the payment of a specified amount in case of an unfortunate event such as death, illness, or injury. It is a form of risk management that helps individuals and businesses reduce their financial losses by transferring the risk to an insurance company.