What is insurance simple

What is insurance? Insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected financial losses. The insurance company pays you or someone you choose if something bad happens to you.

What is insurance in easy word?

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 the main purpose of insurance?

Purpose of insurance\n\n Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee—an insurance premium—to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.