An insurance is a financial arrangement in which an individual or an entity, known as the insured, pays a premium to an insurance company in exchange for protection against potential financial losses or damages. It is a risk management tool that provides peace of mind by transferring the financial burden of uncertain events to the insurer.
In the event of an insured peril, such as accidents, natural disasters, or illness, the insurance company compensates the insured entity according to the terms and conditions of the insurance policy. Insurance helps individuals and businesses mitigate the financial impact of unforeseen events, enabling them to recover and rebuild in times of adversity.
An insurance plays a crucial role in providing stability, security, and protection in various aspects of life, including health, property, vehicles, businesses, and more.
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