INSURANCE

Insurance is a contract, in form of financial protection policy. This policy covers the monetary risks of an
individual due to unpredictable emergencies.

Insurance can be for properties such as smartphones, house and cars. Lives and health can also be
insured.

Premium is the amount of money to be paid for an insurance policy.

BENEFITS OF INSURANCE

1. Provides Protection

It reduces the impact of loss that one bears in perilous situations. Insurance provides monetary
reimbursement during Finiacial crises.

2. Provides certainty
Insurance provides a feeling of assurance to an individual. When an individual pays a small
amount of money for this certainty that will be of great help in the future, there is full
confidence of financial aid against the premium.
3. Saving Habits

Insurance policies help inculcate saving Habits among individuals. The individual keeps a portion of
income to pay premiums that act as an investment for the future which will guard unknown future
situations.

4. Reduces stress during difficult times

We do not know what lays around the corner for us. Illnesses and Injuries to life and properties
would be taken care of and will reduce family Finiacial stress .

5. Peace of mind

No amount of money can replace your health and wellbeing – or the role you play in your family. But
you can at least have peace of mind knowing that if anything happened to you, your family’s
financial security is assisted by insurance.