1: An arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium.
2: Insurance is a term in law and economics. It is something people buy to protect themselves from losing money…In exchange for this, if something bad happens to the person or thing that is insured, the company that sold the insurance will pay money back.
Types of Insurance:
- Life Insurance
- Health Insurance
- General Insurance
Life Insurance
Why you need it: Death can be expensive from settling of estate to planning a funeral; the associated costs can really set you back. But a life insurance policy ease the financial burden placed on a surviving spouse and Independence(i.e. children)
Who needs it : Those with Independent
What it is : In the event of death, a life insurance policy pays a beneficiary an agreed upon amount of money to cover the expenses left by the deceased. A beneficiary is the person or entity named in a policy who receives benefits, such as a spouse.
Health Insurance
Why you need it: Both expected and unexpected health care expenses including routine visits, medications, emergency stays, and serious surgeries can add up quickly and cause a lot of debt for those who can’t afford the out of pocket cost.
Who needs it : Everyone
What it is : Health insurance is a contract between a health insurer and a policy holder that requires the health insurer to pay for all or at least a portion of medical cost.
Car or Bike Insurance
Why you need it : Driving while uninsured is against the law and dangerous because the driver and their vehicle aren’t protected against an accident, collision , or general theft and vandalism.
Who need it : Those who have own vehicles
What it is : Auto insurance covers cars, motorcycles, trucks, and other vehicles and is intended to protect against physical damage or bodily injury that could result from driving, whether the incident is reckless or an accident.