What is Insurance? Information of Insurance-Inews71

The word "Insurance " means a contract by which a person or a family can get protection from financial loss. With the help of insurance, risk management has become easy for an insurer. To prevent financial loss, insurance is the best way.

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A policyholder is a person who buys insurance. Now, there are mainly two types of insurance.
1. Life Insurance
2. General insurance

Life insurance is the most elementary sort of Insurance. It is a contract that offers financial compensation in case of death or disability. Life insurance can help and support to a family at the time of danger, even after retirement. It includes :

1. Term Insurance
2. Whole Life Insurance
3. Endowment Policy
4. Money- Back Policy
5. Unit - Linked Insurance Plan
6. Child Plan
7. Pension Plan

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General insurance is another type of insurance. It is the contract that offers financial compensation on any loss other than death. General insurance is a type of insurance that insures everything apart from life. We are very familiar with 5 types of general insurance are as follows:

1. Health Insurance
2. Motor Insurance
3. Travel Insurance
4. Home Insurance
5. Fire Insurance

We believe that insurance is the way to spread the risk over the persons who are insured. Besides, the system to help each member of the society. And also the way to provide security against losses.

The functions of insurance can be divided into two parts. They are:

1. Primary Functions
2. Secondary Functions. Primary functions are -
1. To provide protection
2. Prevention of losses
3. To reduce the risk levels
4. Helps in economic development
5. It helps a person to establish.
6. Risk sharing

Besides the above primary functions, it works for the following such functions :

1. Helps victim at the time of danger,
2. The insurance assists financially for many organizations such as health organizations, educational institutions, and many organizations that are deeply involved with human welfare.
3. The insurance can protect society from huge losses or damage.