Insurance - Can minimize the risk but can’t be eliminate

According to me insurance is something which is minimizing your risk from any type of accidence. Put simply, insurance is a policy intended to make sure that you are no worse off after an accident or disaster (such as a flood, fire or burglary) than you were beforehand. There are various types of insurance are available, from that you have to take out by law (such as car insurance), to policies that it is a good idea to have to those that are 'nice to have' rather than necessities. 

Figures from the “Association of British Insurers” explain that, during the recession, one in four people cancelled their home insurance. While it is a good idea to make sure you are not paying for insurance you do not need, you should always think about what would happen if disaster were to hit before cancelling any insurance policies. When you take any kind of insurance policy, the policy taker has to pay a premium to the insurance company. If you never make a claim, you may never get any of the money back; instead it is pooled with the premiums of others who have taken out insurance with a particular firm.

Think properly, that may not sound like a good deal, but the idea behind insurance is that every person pays into a pot of money, knowing that only a few of them will ever need to make a claim. If anyone makes a claim the money comes from the pool of your and other policy taker premiums.

  

There are various types of insurance. Home, automobile & life are just three of the various kinds of insurance policies which are available for clients. Insurance, of all kinds, is used to help protect clients when certain things happen. For the mainly part, this protection comes in the form of money. It can also offer protection from damages, liability and financial loss, but in the end, it frequently comes down to money.