Insurance is a form of management that has the potential risk of unexpected things such as loss, death, loss, health and so forth. so that in the event you can get compensation, waivers, monetary dependents according to the type of insurance.

Insurance allows individuals, businesses and other entities to protect themselves against potential significant losses and financial difficulties at an affordable level. We say "significant" because if the potential loss is small, it makes no sense to pay a premium to protect against losses.

as an example of significant financial loss If you are the main breadwinner in your home, the loss of your family's income will experience the consequences of life, education and other difficulties that may relate to them. It will be very difficult for your family to replace your income, so the monthly premium ensures that if you die, your income will be replaced by the sum insured. The same principle applies to many other forms of insurance. If potential losses will have adverse effects.



Insurance benefits and basic insurance goals


All people who want to protect themselves or others against financial difficulties must consider insurance. This may include:


Protect your family after someone's death from loss of income
Ensure debt payment after death
Includes contingent liabilities
Protect against the death of key employees or people in your business
Protect your business from business disruptions and loss of income
Protect yourself against unexpected health costs
Protect your home against theft, fire, floods and other hazards
Protect yourself against lawsuits
Protect yourself in terms of disability
Protect your car against theft or losses that occur due to an accident.


Besides that there are many more reasons someone must have insurance. a large group of people who want to insure against certain losses pay their premiums to insurance companies Because the amount of insured people is so large, insurance companies can use statistical analysis for projects what their actual losses will be in a particular class.

They know that not all individuals who are insured will suffer losses at the same time or at all. This allows insurance companies to operate profitably and at the same time pay for claims that may arise. For example, most people have car insurance but only a few actually get into an accident. You pay for possible losses and for the protection you will be paid for losses in the event that they occur.

Risk

- Life is full of risks - some can be prevented or at least minimized, some can be avoided and some are truly unexpected. What is important to know about risk when thinking about insurance is the type of risk, the effect of the risk, the cost of risk and what you can do to reduce risk. Let's take the example of driving a car.

- Type of risk: Body injury, total loss of vehicle, must repair your car

The effect: Spending time in the hospital, having to rent a car and having to make a car payment for a car that no longer exists

- Costs: Can range from small to very large

Types of insurance

Various types of insurance are provided by various companies engaged in insurance. such as health insurance, loss insurance, losses, education insurance, life insurance and other insurance models.