Insurance
Overview
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder.
History
The concept of insurance has been traced back to ancient civilizations. The earliest forms of insurance were a simple system of risk pooling where people would contribute to a common fund that would be used to cover any losses suffered by the group. This basic concept has evolved over the centuries into the complex and highly regulated industry that we know today.
Types of Insurance
There are many types of insurance, each designed to cover different types of risk. Some of the most common types of insurance include:
Life Insurance
Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The policyholder typically pays a premium, either regularly or as a lump sum. Other expenses, such as funeral expenses, can also be included in the benefits.