Insurance

 Insurance is the transfer of equitable risk of a loss, from one thing  to other in exchange of payment.  While talking about insurance we have to talk about various  things. These  things are mentioned below
a)    An insurer or insurance carrier
b)    An insured or policyholder
c)    A premium
d)    A beneficiary
e)    The amount
f)    Time frame
 Insurer is a company selling insurance and the insured is the person or entity buying the insurance policy. Premium is a certain amount to be charged for the coverage of amount of insurance, after the maturity of insurance. Beneficiary is the person who is to get the amount of insurance. It can be insurer himself or the person chosen by insurer whom the insurer is liable to pay the amount of insurance on his absence.  The amount is the sum of money that is to be paid to the insured by the insurer after the maturity of insurance. It is also the amount that is paid by the insurer to the beneficiary of insurance if the risk for which the insurance is done occurred during the period of time. Well there is slight difference  in amount paid in these two cases, if the risk for which the insurance is done is occurred before the maturity of insurance then the insurer will pay the total amount of money for which the insurance is set or bought to the beneficiary of insurance, but if the risk for which the insurance is done doesn’t occur till the maturity of insurance  then the insurer would pay total amount of money for which the insurance is bought plus certain amount of interest to the beneficiary of insurance . Time frame is the period of time for which the insurance is done.
Insurance are of different types, depending upon the nature of insurance some of them are listed below
a)    Auto insurance
b)    Health insurance
c)    Life insurance
d)    Causality insurance
e)    Burial insurance etc..
Insurance is normally done for risk management, which may happen in future. Insurance have got two main advantage, one if the risk for which it is done happens within the time frame, there would be no financial burden to the insured because the insurance company would pay the amount, and if the risk doesn’t happen within the time frame for which it is done, then also insured would get the mentioned amount plus interest.
These days many organization do different kinds of insurance where risk of happening the circumstances is high like life insurance of their employee, automobile insurance etc. General people also do a different kind of insurance like, health insurance, life insurance, so that if anything bad to these factors, the financial burden would not be there to them and their family, So development of Insurance is good through every respect.