What isinsurance and how it is working ?

Question

Accepted Answer

Insurance is a financial product that provides protection against financial losses by pooling the risks of many individuals and businesses.

Insurance involves an individual or entity (the insured) paying a premium to an insurance company in exchange for protection against potential financial losses.
The insurance company then pools the premiums from many policyholders to create a fund that can be used to pay out claims when necessary.
There are various types of insurance, including health insurance, life insurance, auto insurance, and property insurance.
Insurance works on the principle of risk management, where the insurer assumes the risk of potential losses in exchange for a premium.
In the event of a covered loss, the insured can file a claim with the insurance company to receive compensation for the financial loss incurred.

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