What is insurance?

Insurance is generally a financial coverage for the losses which is beared by the person under certain circumstances or we can say that it is a legal agreement between two parties, the two parties include 1) insurer 2) insured.
Insured is defined as the person who is covered against risk while insurer is the company that is providing coverage.
In simple terms if any unfortunate things happen to the person at any time where he/ she is not aware about the situation and not having that much amount or we can say he or she was financially weak then this insurance will help them in her bad situation or mishappening.

What is the importance of insurance?

Insurance help the society for managing their economic growth. Insurance develop financial institutions and reduce uncertainties by improving financial resources.

1. It provide safety and security to the person in case of any sudden financial loss . It provide financial support to the person and reduce the uncertainties in business and human life. Let take example that if any accident happen in anyone's life then this insurance will help to overcome from the financial loss.

2. Some insurance plans will help in protecting the dreams of your child in terms of his/her education. Insurance are make sure that your children are financially strong while pursuing their goals.

3. There is one type of insurance that is home insurance which help a person when there is any damage to your home then this insurance will help you to get coverage for damages and pay for the cost of repairs, whichever is needed.

4. It will help your family to maintain the stability of financial growth. If any unfortunate death to the sole earner will happen then the insurance will help to the other family members.

5. Insurance will help in encourage savings. Everyone need savings in this generation. They saved money for the future needs which help in our education and in other events.

Types of insurance 

1) Health insurance 

Health insurance are types of insurance that helps to cover the expenses done by the medical care.
We should always done our health insurance policy because no one knows when their health will be affected by the surroundings as we all know that the pollution level is increases and it also affect the human health.

2) Property insurance 

Property insurance gives you financial coverage against damage caused to your private property due to fire, earthquake and many other casualties.
If you have many properties then you have to done your insurance as it help to give you financial support if any unfortunate things happen to your properties.

3) Travel insurance 

This insurance covers the costs and losses which are incurred while traveling.
Facts - 36 percentage of Americans say they're more likely to purchase travel insurance for trips abroad following the COVID-19 pandemic while 34 percentage said they're more likely to do so for domestic trips.

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