What is insurance

1. What is insurance?

Insurance is an arrangement with an insurance company in which you pay for regular amounts and they agree to cover your costs if a certain unfortunate event occurs, such as a road accident, damage to property or to the property. disease. Insurance can also be organized for a common event, eg. If you reach a certain age. An event covered by insurance is called insurance event. The person to whom such an event occurs or may occur is called the insured person. When an insurance event occurs (you get sick, undergo an accident, reach a certain age), the insurer will pay you a certain amount of money called insurance / claim paid. The insurance delivery / paid demand will help you or your family to overcome financial difficulties or increase costs that may arise from an insurance event. This means that, by organizing insurance, you get insurance coverage against a certain risk.


Like any other service, insurance is not provided free of charge. The insurer promises to pay you a benefit / claim amount as agreed in the insurance contract, the occurrence of an insurance event. The price you must pay for this service is the insurance premium. The person coming out of an insurance policy and a pay insurance premium is called insurance policy. The insurance premium is payable in monthly, quarterly or annual versions as a general rule, but it can also be paid in one payment.


In addition, the insurer can charge you various fees. As a result, ask the insurer how much you will be required to pay for costs and other costs. This is particularly important in the case of life insurance. Are you aware that life insurance expenses are rather high, especially in the early years?