Definition of insurance?

Question

Definition of insurance?

Answer 1

It ENSURES you compensation of the value you insured in case of property loss or death, hence insurance !

Answer 2

Exactly what Jaesha said. It's the transference of risks to an insurance company who makes covering the risk affordable by 'risk-pooling.'

Some people will benefit more than others will...but you generally will be glad you paid the premium if you are the person in that 'risk pool' to benefit from the coverage when it is needed. In the event of death, it's the survivors who will benefit by being compensated for the financial losses caused by a person's death--particularly if that person is a wage-earner who others depend on.

Answer 3

The strict definition of insurance is that it's a system to make large financial losses more affordable by pooling the risks of many individuals and business entities and transferring them to an insurance company or other large group in return for a premium.

~J~

Okay, for some reason someone didn't like my first answer. LOL. Basically by creating insurance we all throw our gold (premium) into a large pot (policy), controlled by a Lucky Leprechaun (Insurance Company), to cover potential losses.  He's lucky, because he usually gets to keep most of the gold and invest it, while all we do is put more into the pot.  The risk is that even though we hope that nothing bad ever happens, we are covered just in case, and we'll be able to get some gold out of the pot.  The fact that we have put our gold in this pot along with other people, who also hope that nothing bad will happen to them allows us to minimize the amount we pay (premium), for a payout for a loss that could be much larger than the gold that we put in the pot.  Of course we need to make sure that we always keep our eyes on the Leprechaun, because these days he can steal all of our gold and disappear (go out of  business), leaving us empty handed.

Better? :-)

btw, thx Leroy ;-)

Answer 4

Insurance is a mechanism to secure against uncertainties.

Answer 5

something which makes u poor when u live and rich when u die

Answer 6

SECURITY OF UNCERTAINITIES

Answer 7

.....preparing for what might happen, just in case it happens.

Answer 8

procedure or contract securing compensation for loss, damage, injury or death on payment of premium.

Answer 9

in lay-mans terms : your betting you get sick and the insurance company is betting that you don't

Answer 10

one of the profitable investment plan, where you are benefited more than other long term investment.

Answer 11

The act, business, or system of insuring in return for premiums paid.