Insurance is an very important term when it comes to you and your family. What is Insurance? , Types of insurance, advantages of insurance and all questions are there in your mind but just read this and your all doubts will be cleared within a 5 minutes.

Insurance: Meaning, Basic terms, types and how to get insurance ?

Insurance is a means of protection from financial loss. Insurance is a risk management and future predictions. Insurance is used against the risk of a contingent or uncertainty in your life.

Insurance is a contract between the insurer and the insured in which insurer agrees to compensate the insured against the financial loss.

Basic terms of Insurance:-

1. Insured :- The person who is protected by insurance against certain types of losses. This insured is known as assured in case of life insurance contracts  because he is the policyholder.

2. Insurer:- The firm or insurance company who agrees to you to compensate the insured against losses for that consideration.

3. Premium :- premium is paid by the insured to insurer. It is the consideration for which the insurer agrees for insurance.

4. Policy:- policy contains all the terms and conditions of the insurance contracts. It is the agreement between the insurer and insured.

5. Claim:- it is a demand made by the insured to the insurer for the loss occurred due to some incidents.

6. Proposal :- it is a written request by the insured to the insurance company to issue an insurance policy.

7 . Subject Matter:- it is the subject or entity that is life. Property, cargo or ship etc. Which is insured against the policy is taken.

Example of insurance companies:- Life Insurance Corporation of India (LIC), SBI Life Insurance, etc.

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