Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

An entity which provides insurance is known as an insurer, insurance company, or insurance carrier. A person or entity who buys insurance is known as an insured or policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss.

Insurance allows individuals, businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate. We say “significant” because if the potential loss is small, then it doesn’t make sense to pay a premium to protect against the loss.


Everyone that wants to protect themselves or someone else against financial hardship should consider insurance. This may include: 

  • Protecting family after one’s death from loss of income

  • Ensuring debt repayment after death

  • Covering contingent liabilities

  • Protecting against the death of a key employee or person in your business

  • Buying out a partner or co-shareholder after his or her death

  • Protecting your business from business interruption and loss of income

  • Protecting yourself against unforeseeable health expenses

  • Protecting your home against theft, fire, flood and other hazards

  • Protecting yourself against lawsuits

  • Protecting yourself in the event of disability

  • Protecting your car against theft or losses incurred because of accidents

  • And many more

 Click here to know about Life Insurance.

 Click here to know about Health Insurance