Insurance is a contract which is used to manage your risk.
When we buy insurance, we purchase protection against unexpected financial losses.
The insurance company has to pay a certain amount of premium to the insurer to avail insurance. The insurance company pays us or someone we choose, an insured amount of money if something bad happens to us.
If we do not have insurance and an accident happens, we will pay for all related costs.
Final answer- Insurance is a contract which is used to manage your risk. When we buy insurance, we purchase protection against unexpected financial losses.
The insurance company has to pay a certain amount of premium to the insurer to avail insurance.
The insurance company pays us or someone we choose, an insured amount of money if something bad happens to us.
If we do not have insurance and an accident happens, we will pay for all related costs.