INSURANCE

What is Insurance:

For understanding the word "Insurance" one should know its meaning. Generally insurance is known as a practice by which a company gives a grantee of compensation for any type of loss e.g loss, damage, illness, death etc. In simple words it is the transfer of risk of  loss by exchange of payments.                  

Why Insurance:

Best purpose of insurance is to financially protect a individual, organization or any type of entity from a sudden and unexpected damage. Insurance is the contract between two parties, the one which takes insurance is called insurer and the party which provides insurance is called assurer.

How Insurance works:

Now the question rises that how insurance works??? The answer to this question is that insurance works on the basic principle of  pool funding. Pool funding is an approach by which different localities, holding insurance donate payment funds to raise a large amount that is used to compensate the unexpected loss of any insurer.

Types:

There are following types of main insurances:

• Auto Insurance
• Life insurance
• Burial Insurance
• Property Insurance
• Gap insurance
• Health Insurance
• Casualty Insurance

 How to get Insurance:

Insurance companies are working in every state and country. In order to get insurance one should chose its interested type of insurance and contact to the concerned company and get insurance after agreeing to their certain policies. Now a days Auto & Health insurances are very common.