Insurance
Insurance is a financial arrangement that provides protection against certain risks or losses. It involves a contract, known as a policy, between an individual or entity (the insured) and an insurance company (the insurer). The insured pays a premium, which is a regular payment made to the insurer, and in return, the insurer agrees to compensate for specified losses or damages that may occur due to defined events, such as accidents, illnesses, or property damage.The purpose of insurance is to provide security and financial support to individuals or businesses when unforeseen events occur, helping to mitigate the financial impact of those events. There are various types of insurance, including life insurance, health insurance, auto insurance, and property insurance, each catering to different needs and risks.Insurance operates on the principle of risk pooling, where the premiums collected from many policyholders are used to pay for the claims of the few who experience a loss. This system helps to spread the risk among a larger group and provides peace of mind to policyholders, knowing they have a safety net in place.