The Reasons, Benefits

Insurance can be regarded as an arrangement between an individual or group of persons or a company with a particular kind of company called an insurance company in which the insurance company gives financial protection against loss or harm such as illness or theft

This service is not free but is given at a cost. A form of payment known as premium is paid by whoever is taking the insurance policy to the insurance company. A premium is the payment made to the insurance company in other to obtain the insurance coverage bought.

Insurance provides financial protection against a loss arising out of happening of uncertain event. Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.