What is Insurance?

 

What is Insurance?

Insurance is a way to protect yourself from unexpected financial losses. When you buy insurance, you pay a company a small amount of money called a premium. In return, the company promises to help cover the costs if something bad happens — like an accident, illness, or damage to your property.

How Insurance Works

• You pay regular premiums (monthly, yearly, etc.).

• If an insured event happens (like a car accident or a health emergency), you can file a claim.

• The insurance company reviews your claim and helps pay for the losses, depending on your policy.

Common Types of Insurance

• Health Insurance: Covers medical bills and treatments.

• Auto Insurance: Protects you if your car is damaged or you cause an accident.

• Home Insurance: Covers your home and belongings from damage or theft.

• Life Insurance: Provides money to your family if you pass away.

• Travel Insurance: Helps if something goes wrong while you're traveling.

Why Insurance is Important

• It provides peace of mind.

• It protects your savings.

• It helps you recover faster after unexpected events.