1. What Is Insurance?

Insurance is a financial arrangement that protects individuals or businesses from potential future losses by transferring the risk to an insurance company in exchange for a premium.

2. Why Is Insurance Important?

Insurance provides financial security and peace of mind. It helps cover unexpected losses like accidents, illnesses, or natural disasters, reducing the financial burden on individuals or families.

3. Types of Insurance

Common types include health insurance, life insurance, car insurance, home insurance, and travel insurance. Each serves a specific purpose depending on the type of risk involved.

4. How Does Insurance Work?

You pay regular premiums to an insurer. In return, if a covered loss occurs, the insurer compensates you based on the policy terms and conditions.

5. What Is a Premium?

A premium is the amount you pay regularly (monthly, quarterly, or annually) to maintain your insurance coverage. The amount depends on the coverage, risk, and policy type.

6. What Is a Deductible?

A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. Higher deductibles usually result in lower premiums and vice versa.

7. Life Insurance Explained

Life insurance pays a lump sum to your beneficiaries upon your death. It helps your family cover expenses like funeral costs, debts, and ongoing living expenses.

8. Health Insurance Basics

Health insurance covers medical expenses such as doctor visits, hospitalization, medication, and surgeries. It helps reduce the financial strain of healthcare costs.

9. How to Choose the Right Insurance Policy

Assess your needs, compare different plans, read the fine print, consider claim settlement ratios, and consult a licensed insurance advisor if needed.

10. Tips for Saving on Insurance

Bundle policies (e.g., auto + home), maintain a good credit score, increase your deductible, shop around for quotes, and review your policies annually.