Insurance

Insurance means protection against financial loss from unexpected events. In simple terms, insurance helps people pay for certain risks, such as accidents, illness, damage, or loss. Insurance is important because it can reduce the financial impact of large unexpected costs. People and businesses usually pay regular premiums, and the insurance company agrees to cover certain losses under the policy. For example, if a person has car insurance and gets into an accident, the insurance may help pay for repairs or related costs. Insurance does not remove all risk. Policies have rules, limits, deductibles, and exclusions, so not every situation is covered.