What is insurance?
Insurance is ,a legal contract
that protects people from the financial costs that result from loss of life,
loss of health, lawsuits, or property damage. Insurance provides a means for
individuals and societies to cope with some of the risks faced in everyday
life.
For example, you have insurance for your house in case it burns down. If
that happens, you get money from the insurance company to house your family and
rebuild (or replace) your home. You can purchase insurance for a wide variety
of perils - fire, theft, natural disasters (floods, earthquakes, etc.),
property damage, personal injury claims, and so forth.