What is the main purpose of insurance

introduction insurance acts as a protection internet, protecting people and corporations from ability monetary losses springing up from unexpected occasions. it’s miles a settlement among the insured and the insurer, in which the insured can pay a top rate in change for coverage towards specific dangers. understanding insurance coverage is a threat control tool that allows individuals and companies switch the financial burden of capability losses to an coverage agency. it really works on the precept of pooling dangers, in which severa policyholders make contributions rates to create a commonplace fund. This fund is then used to compensate individuals who go through losses protected by way of the coverage policy. styles of insurance there are numerous styles of coverage to be had to cater to one of a kind desires. some of the most common kinds encompass: life coverage existence insurance offers financial safety to … Read more