What is meaning of Insurance

What is meaning of Insurance




Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

An entity which provides insurance is known as an insurer, an insurance company, an insurance carrier or an underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an Insurance.

Policyholder and insured are often used as but are not necessarily synonyms, as coverage can sometimes extend to additional insured’s who did not buy the insurance.

The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss.

The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.




Types of Insurance

  1. Health Insurance
  2. Auto Insurance
  3. Life Insurance
  4. Home Insurance
  5. Umbrella Insurance
  6. Renters Insurance
  7. Travel Insurance
  8. Pet Insurance

 

  • Health Insurance

Health Insurance is a contract between a health insurer and policy holder that requires the health insurer to pay for all or at least a portion of medical costs.

  • Auto Insurance

Auto Insurance covers cars, motorcycles, trucks and other vehicles, and is intended to protect against physical damage or bodily injury that could result from driving, whether the incident is reckless or an accident.

  • Life Insurance

Life Insurance in the event of death, a life insurance policy pays a beneficiary an agreed-upon amount of money to cover the expenses left by the deceased. A beneficiary is the person or entity named in a policy who received benefits such as a spouse.

  • Home Insurance

Home Insurance covers the house you reside in and any associated structures, such as a porch, garage, and balcony.

  • Umbrella Insurance

Umbrella Insurance is also called liability Insurance because it covers cost in excess of other insurance policies.

  • Renters Insurance

Renters Insurance is used by tenants to cover personal property in case of damage or theft, which is not the responsibility of the landlord.

  • Travel Insurance

Travel Insurance covers trip cancellations, lost or misplaces language, Travel accidents, and even medical expenses while on the trip.

  • Pet Insurance

Pet Insurance covers all or part of veterinary treatment when a pet is hurt or sick. There are two types of pet Insurance: a wellness plan that covers routine visits and shots, and a health insurance plan that is more comprehensive of genetics disease and major surgeries.