Insurance is a financial tool that provides protection against unexpected losses. It works on the principle of risk-sharing, where individuals or organizations pay a small amount known as a premium to an insurance company in exchange for financial support when covered events occur.
Types of Insurance
- Life Insurance – Offers financial security to the family of the insured after their death.
- Health Insurance – Covers medical expenses arising from illness or injury.
- Auto Insurance – Provides coverage against vehicle damage, theft, or accidents.
- Home and Property Insurance – Protects against damages caused by fire, theft, or natural disasters.
- Business Insurance – Helps companies manage risks such as property damage, liability, and employee-related issues.
Why Insurance Matters
Insurance provides peace of mind, ensuring financial stability during crises. It helps individuals avoid large out-of-pocket expenses, encourages savings, and contributes to economic growth by promoting stability and investment.
Conclusion
Whether for individuals or businesses, insurance is not just an expense—it’s a necessity. It safeguards our future, minimizes uncertainty, and ensures that we can recover and rebuild after unforeseen events.