What is insurance in easy words

Insurance is a legal agreement between two parties – the insurer and the insured, also known as insurance coverage or insurance policy. The insurer provides financial coverage for the losses of the insured that s/he may bear under certain circumstances.

What is insurance in simple words with example?

Insurance is an arrangement in which you pay money to a company, and they pay money to you if something unpleasant happens to you, for example if your property is stolen or damaged, or if you get a serious illness. The insurance company paid out for the stolen jewellery and silver.

What is insurance in simple words for interview?

Insurance is a type of contract represented by a policy. It is a contract between the policyholder and the insurance provider. Insurance is a kind of protection from financial loss. It is a form of risk management and is mainly used to hedge against the risk of an uncertain loss.

What is insurance in simple words Class 11?

It is a contract or agreement under which one party agrees in return for a consideration to pay a specified amount of money to another party to make a loss, damage or injury to something of value in which the insured has a pecuniary interest as a result of some uncertain event.

What are 3 types of insurance?

Then we examine in greater detail the three most important types of insurance: property, liability, and life.