What is insurance.Why should I purchase insurance?

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What is insurance.Why should I purchase insurance?

What is insurance?


Insurance is a risk transfer mechanism that transfers responsibility for losses to specialists called insurance companies who manage the risk by distributing it to a large number of people or businesses. Insurance can help cover expenses in the event of unforeseen circumstances such as theft, illness or property damage. If you purchase insurance for one of your assets, the insurance company will pay you an amount equal to the value of the lost asset. You can also take out life insurance to protect your loved ones in the event of your death.


Why should I purchase insurance?

Insurance can protect you from financial loss in the event of the unexpected. Accidents and disasters can and do happen, and if you're not properly insured, it can lead to financial ruin. When you buy insurance, you transfer the cost of the potential loss to the insurance company in exchange for a commission, called a premium. Insurance companies invest funds securely so they can grow and be used to pay claims as they arise. The insurance decision will depend on your situation and stage of life. Here are examples of insurance coverage:


What is insurance.Why should I purchase insurance?


Car insurance: This will cover the cost of repairing your car if you are in an accident or pay you the cost of insurance if your car is stolen. This will also protect against loss by third parties.

Life insurance: This will be paid to your family in the event of your death.

Property Insurance: This will cover the cost of repairing your property in the event of fire or damage due to the reasons stated in the policy terms. You can insure both residential and commercial real estate.

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