Insurance in its basic form is defined as “ A contract between two parties
whereby one party called insurer undertakes in exchange for a fixed sum
called premiums, to pay the other party called insured a fixed amount of
money on the happening of a certain event."

In simple terms it is a contract between the person who buys Insurance and
an Insurance company who sold the Policy. By entering into contract the
Insurance company agrees to pay the Policy holder or his family members a
predetermined sum of money in case of any unfortunate event for a
predetermined fixed sum payable which is in normal term called accident and illness insurance
Insurance is basically a protection against a financial loss which can
arise on the happening of an unexpected event. Insurance companies collect
premiums to provide for this protection. By paying a very small sum of
money a person can safeguard himself and his family financially from an
unfortunate event.

For Example if a person buys a Life Insurance Policy
by paying a premium to the Insurance company , the family members of
insured person receive a fixed compensation in case of any unfortunate
event like death.

There are different kinds of Insurance Products available such as Life
, Vehicle Insurance, Home Insurance, Travel Insurance, Health or
Mediclaim Insurance etc.

1 comment:

Life Kristin said...

interesting post thanks. tho i think you can get a forward payment if you suffer from a terminal illness?