What is insurance mean?
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.
What are types of insurance?
Types of Insurance Business are;
  • Life Insurance or Personal Insurance.
  • Property Insurance.
  • Marine Insurance.
  • Fire Insurance.
  • Liability Insurance.
  • Guarantee Insurance.
  • Social Insurance.
What does an insurance company do?
Insurance companies basically do three things with the premium dollar. First, they pool the money to pay claims. Second, insurance companies pay for expenses involved in selling and providing insurance protection. Third, insurance companies invest money.
What is the benefit of insurance?
Insurance makes it unnecessary to set aside a large amount of money to pay for the financial consequences of the risk exposures that can be insured. This allows that money to be used more efficiently. Another uncommon, important benefit of insurance is support for the insured’s credit.
What are the advantages of insurance?
Explain any five advantages of insurance.

Insurance provides economic protection to the insured. It provides financial protection to the insured against the unexpected losses in consideration of nominal amount called premium. It provides financial protection to the dependent in case of pre-matured death of insured.

Why is insurance important in life?
Top Reasons Why Life Insurance Is So Important

Pay Off Debts: A life insurance policy can pay off any debts that you leave behind that would be a burden to your family. Debts such as a a mortgage, credit cards, car loans and even your funeral expenses can have a dramatic impact on your family and their lifestyle.

Why should I buy insurance?
One of the most common reasons to buy life insurance is to replace income if a spouse dies. … For business owners and the wealthy, it can be a way to ease financial burdens other than lost income. It can be used in planning to pass on a business, pay taxes or for estate planning, for example.
Why insurance is required?
Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim. Insurance helps you: Own a home, because mortgage lenders need to know your home is protected. It covers you for repairs and replacement of any damage that’s covered in your policy.