What Is Insurance
An arrangement that provides protection for your loss, death, marriage plan, study plan, illness or damage in return of payment is insurance. It is a management that equitably transfers risks of loss and damages and protection from one person or company to another person or company in exchange of payment. There are two parties involved that are insurer and insured.
The insurer is a person or in case we can say a company which offers the policy the person is policy holder. And the second party insured is a person who purchases a policy against any loss in a suitable manner. The amount pay in policy for the certain time period is called premium. And the premium is paid by insured person after any certain time period. Actually it is a promise to pay certain amount of money in a case of compensation to any loss of insured person. If a person buy a property like building, factory, any vehicle and he does not know about the life time guarantee of that.
The car or any other vehicle can be crashed in any accident. The building can be fired. A person would die accidentally so the people purchase the insurance policy that gives assurance that the company will compensate your loss at the time of your need against your payment or policy plan. Same case with study and marriage plans. That a person would not know about their future so they purchase policies that at the time of need of study or marriage they could have some money.
