Irrespective of the type of insurance you purchase, you need to know how it works. You also need to learn how to make the best choice for your needs and requirements taking into account different types of factors. Use this guide to find the answers to the most important questions regarding your purchase of insurance.
Insurance is a form of risk management. It is used for hedging you against a certain loss that may or may not occur at one point in the future. Usually, different types of assets are insured, but in some cases the loss you are hedged against may be personal. The insurance company hedges the risk of loss on your behalf in an exchange of payment.
When you buy insurance from a company you sign a formal contract known as a policy. This contract contains all terms and conditions