Insurance

In general, insurance means managing a risk. It is a policy from a large financial institution that offers a person, company, or any other entity refund or financial fortification against possible future losses or damages. Insurance could be defined as the equitable transfer of the loss, from one entity to another, in exchange for a premium, and can be thought of as a definite and known small loss to put off a large, possibly irresistible loss. Insurance is bought in order to hedge the possible risks of the future which may or may not happen. This is a method of financially securing a person, company, or any entity by considering a few factors that the loss should not affect in anyway. Thus, owing to insurance, a person or the company could get assurance of security and protection. For example, in life insurance sector, it works in the manner by collecting premiums from the policy holders, investing the money (usually in low risk investments), and then pays back the same amount once the person passes away or the policy matures. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a unite sum cash payment or pension mode.

Most of the insurance companies across the globe have ownership of two types.

1. Shareholder Ownership.
2. Policyholder Ownership.

Types of Insurances

As a matter of fact, one can not foresee a sudden risk but we could predict them . Any risk that can be measured can potentially be insured. Specific kinds of risk that may give rise to claims are known as "hazards". An insurance policy will set out in details which risks are covered by the policy and which are not. Insurances are of two types, namely Life insurance and General insurance.

Here general insurance comprises of home insurance, property insurance, accident and health insurance and liability insurance... etc. Below are (non-exhaustive) lists of the many different types of insurance that exist. A single policy may cover risks in one or more of the categories set out below. For example, auto insurance would typically cover both property risk (covering the risk of theft or damage to the vehicle) and liability risk (covering legal claims from causing an accident).

1. Auto (Motor) insurance
2. Health insurance
3. Home insurance
4. Life insurance
5. Liability insurance
6. Travel insurance and so on….