Insurance means to cover the financial risk that looms over future uncertainty. Taking this concept of monetary risk in mind, many companies provide the security services to the public. The company that provides this service is known as the insurer and the one who takes the benefit of these services is known as the insured.
The process of getting insurance starts by signing a contract with agreements carefully considered by both the parties. Once the contract is signed between the insurer and the insured, premium needs to be paid on a regular timely basis. As per the contract, if any loss is incurred, then the company is obliged to cover the loss.
Various types of insurance services are provided by insurance company around the world. Health insurance covers all the risk related to one’s physical and mental health. Auto Insurance protects any loss incurred due to accidents involving a vehicle. Life insurance looks at overall risks and financial loss that may occur and if some casualties occur, then the insurance amount is given to the family of the insured. Property insurance is the insurance of any property from fire, theft and weather damage.
Majorly there are two types of insurance companies. One deals with life insurance services while the second one deals with the non-life services or property insurance services.