Definition of insurance?
Answers:
The periodic premium compensated for something's coverage.
eg. car insurance is when a sports car has some rear legs up money from a company so when a car have been destroyed later the insurance will replace the car next to a new one i.e. similar but only for a while until the sports car is fixed.
Here's a hasty, easy, and simple one:
Insurance is risk nouns.
Clean and simple. :)
is a form of risk direction primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable verbs of the risk of a potential loss, from one entity to another, in exchange for a premium
contained by short tranfer of risk
Spreading risk.. In exchange for a monetary amount, people lay a wager that an event will not happen, and the insured pays a premium also hoping that it will not appear.
Paying for insurance may be the only piece that people earnings for, yet are ecstatic that they don't have to use. You are paying for peace of mind.
Unfortunately, if the event occur, you often find out that your coverage is not exactly what you thought it be. Very sad :-(
Insurance is a risk financing measure that transfers the potential financial consequences of spot on specified loss exposures from the insured to the insurer. Since insurance (in theory) is not intended to provide a gain to an insured, insurance can not be compared to gambling.
Insurance is gambling. You're swapping the agreed loss of a small amount of premium, in exchange for the possible payout next to huge odds, of a much larger amount of money, for correct defined circumstances.