Insurance

What is Insurance?

Insurance is like a parachute - If you don't have it when you need it, you will never need it again!

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools client risks to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party.

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Types of Insurance

Secured loans require collateral, i.e., you must provide an asset to the lender as security for the money you are going to borrow. In this way, if the loan is not repaid by you, the lender has the asset with him and can sell it to recover the money. Secured loan's rate of interest of secured loans are particularly lower as compared to those for loans without collateral.

Why is Insurance Important?

Insurance is an important financial tool. It can help you live life with fewer worries knowing you'll receive financial assistance after a disaster or accident, helping you recover faster.

Buying insurance is important as it ensures that you are financially secure to face any type of problem in life, and this is why insurance is a very important part of financial planning.