What is Insurance

The term insurance means secure all your belongs from the risk of loss, damages, injuries etc with a premium amount. So insurance is a contract between policyholder and insurer, where the policyholder gets paid by the insurer if any loss, damages, injuries, etc are happening. Insurance, in other words, you can get paid with lump sum amount by an insurance company against losses.

How to get Insurance

An insurance company sells different types policies with the premium amount, so the persons who want to buy an insurance policy they can contact the insurer and get the policy based on their needs. In modern technology, you can get insurance companies from online or you can contact directly.

Why get Insurance

Insurance is important for everyone because it protects their dependents, supports life, health, property, etc. For example, life insurance policy helps to get lump sum amount after illness or death, Property insurance helps you protect against any damages of property, Health insurance helps you get paid against illness, Travel insurance helps to get paid against accidents. So a number of insurances are available to protect yourself from any incidents. So you got an idea what is insurance and how to get it.

What is Insurance policy: – The first question which arises in our mind is “what is insurance policy”. The policy is an agreement between the insurance company and policyholder that agreement contains terms and conditions. For example the percentage of the amount to be claimed after or before policy maturity period.

Types of Insurances: – Number of insurance are available in the market, here are few types that we are going to discuss.

  1. Life Insurance: – It provides a security for insured (policy holder) with lump sum amount to a policy holder family after his death.
  2. Health Insurance: – It covers all the policy holder medical and surgical expenses. The insurer pays directly to the provides i.e hospital.
  3. Auto Insurance: -It is an agreement between policyholder and insurance company which holder agrees to pay a premium amount to cover all the damages if any accident occurs.
  4. Travel insurance: – It covers all the expenses of medical and if any losses occurred.
  5. Personal Insurance: – It provides all the expense of your personal treasure at your home. It may cover things like jewelry, cameras, personal computer and so on.
  6. Business Insurance: – This type of insurance cover business related losses such as any fire accident, damages, theft, etc.
  7. Disability insurance: – It covers if any disability happened during the work and provides fixed amount for his illness.
  8. Fire insurance: –It covers the expenses to be replaced if any damages, losses occurred due to fire accidents.

What is Insurance company

It is also known as an insurer that offering insurance policies by selling at any sources. An insurance company recruits insurance agents to sells the different types of insurance policies.


We recommend having an insurance policy to cover all your expenses and protect your life securely. This article covers all the topics that related to what is insurance and you can contact us if you any queries related to insurance.