Insurance is transfer of risk to safeguard from unforeseen adverse conditions in future. The loss can be financial or life taking. The insurance company charges certain premium for the cover, as per the requirement of the insured.

Types of insurance
The insurance can be broadly divided into two segments – Life insurance and General insurance.

In life insurance, the insurer or the company promises to pay a certain sum of money to the insured or the policy holder/beneficiary, at the time of death of the insured or on maturity of the policy, as the case maybe.

General insurance or non-life policy can be broadly defined as:

  • Fire Insurance
  • Marine Insurance

Importance of insurance
It is a way of safeguarding the people or interest of people from uncertain/sudden losses may it be of life or monetary loss.

Few of the benefits of insurance are listed below.

  • Provide safety and security
  • Generates financial resources
  • Life insurance encourages savings
  • Promotes economic growth
  • Medical support