What is Term " Insurance"

Insurance is a contract between an individual or an entity (the insured) and an insurance company (the insurer),

wherein the insured pays a premium in exchange for financial protection against potential losses or damages.

In the event of a covered loss, the insurer agrees to compensate the insured or beneficiaries according to the terms outlined in the insurance policy.

The purpose of insurance is to mitigate the financial risks associated with unforeseen events such as accidents, illnesses, natural disasters, or property damage.

There are various types of insurance available, including health insurance, life insurance, auto insurance, home insurance, and many others, each designed to provide specific forms of protection against different risks.