Insurance can be regarded as an arrangement between an individual or group of persons or a company with a particular kind of company called an insurance company in which the insurance company gives financial protection against loss or harm such as illness or theft.
This service is not free but is given at a cost. A form of payment known as premium is paid by whoever is taking the insurance policy to the insurance company. A premium is the payment made to the insurance company in other to obtain the insurance coverage bought.
Insurance provides financial protection against a loss arising out of happening of uncertain event. Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.
All insurance policies cost money and there are so many of them to choose from. It is very advisable to read a policy carefully and make sure that the terms and conditions are well understood as well as the coverage and costs before buying it. Until you are sure and comfortable with the coverage and until you are also sure that you need it, do not sign on the dotted line.
The uncertainty of what will happen tomorrow is one of the few certainties of life. To guard against this, we have to consider what could happen tomorrow and the subsequent consequences. As a result of this, the need for insurance is very critical to each and every one of us.