Insurance is a way to compensate for any kind of loss in the future. That is why people secure their future by getting insurance. Insurance simply means risk protection. If an insurance company insures any person of any kind, it compensates for their financial loss.
If the insurance company has insured an item such as a car home or mobile, it provides compensation according to the condition stipulated in case of breakage of that item. Insurance acts as a link between the individuals and the insurance company.
If an insurance company insures a person of any kind, he gets a certain amount from that person according to his policy. In the future, the person provides compensation according to the condition on any kind of loss.
What is the type of insurance ?
Generally, there are two types of insurance. We have given detailed information about both these types in this article below.
- Life Insurance
- General Insurance
Life insurance refers to insuring a person’s life. If a person has got life insurance from a company, then on his death the insurance company provides compensation. If the head of the family dies accidentally, then it is very important to get life insurance for running the household expenses. If the said person has taken life insurance, then the insurance company provides compensation to improve the financial condition of his family.
Apart from life insurance, if any item is insured then it comes under the category of general insurance. There are many types of general insurance such as home insurance, auto insurance, health insurance etc.