Life is full of risks. That’s what makes it so interesting and exciting. But some unforeseen smooth can actually lay you back.
Common insurance helps us to save ourselves and the things we value, such as our homes, our cars and our precious, from the financial impact of risks, big and small – from fire, flood, storm and earthquake, to theft, car accidents, and travel mishaps – and even from the costs of legal action against us. And we can select the kind of endanger we desire to comprise by selecting the right type of policy with the features we need.
In general, insurance works by unroll the cost of unforeseen endanger among a large number of people in the same region who share like same risks.
When you take out an insurance policy, you pay a monthly or annual premium. That money joins the premiums of lots of thousands of other policyholders and goes into a big pool of funds.
With any success, you will never want to paint on that pool. But if you happen to be one of the unlucky ones artificial by an unexpected tragedy, maybe direct severe weather or accident, that pool of funds can be used to help you up to the maximum you have chooses in your policy.
If things go in wrong way, your insurer may either repair or replace the things that have been adrift or harm, depending on the terms of your policy. You may also have the choice of receiving a cash settlement for the amount of money in your policy.
General insurance does not comprise health or life insurance
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