We've all heard a lot about insurance. As a general idea, insurance is something that you or the ones you insured maintain a substantial financial loss. But there is so much more to it that you think it's worth the loss. We will look at this in a more detailed way.
What is insurance? In technical terms, this is a form of risk management in which the transferring entity transfers the cost of potential loss to another entity in exchange for a small monetary compensation. This compensation is called as premium. In simple terms, this is like paying a single-sum amount to an entity to protect yourself from a potential future loss. So, when something unfortunate happens, the insurer can help you get through the situation.
