Insurance is a financial product that can be used to hedge against the risk of loss. It is a form of risk management primarily used to hedge against the risk of financial loss.
In order to understand why insurance is necessary, it is important to know what different types of insurance are available and how they work.
There are two main types of insurance: life and non-life. Non-life includes property and casualty, which covers mainly cars, homes, and other possessions; while life includes life, disability, critical illness, long-term care, and annuities.
The purpose of insurance is to provide protection against financial loss in the event that something unfortunate happens.
Why Insurance is Important?
Insurance is a contract between the insurer and the insured. Insurance policy helps to minimize the risk of financial difficulties which would be faced by the families in case of the sudden death of the policyholder. Insurance is one of the most important financial planning tools available in the market. Without Insurance, you might be forced to dig out your savings and liquidate your assets. Insurance is an effective way to manage risk factors and provides peace of mind.