Insurance

Insurance is the act of paying a premium at regular intervals in order to receive a lump sum payout in the event of a certain negative event happening, where it would be difficult to pay the high costs that would come with treatment or putting things right. There are many different types of insurance out there, with the most common being health insurance, car insurance, home and contents insurance and travel insurance. In fact, practically anything can be insured, and in recent years the market for other types of insurance such as pet insurance have grown tremendously.

Some may think of insurance as a bit of a gamble, as if the event that insurance was taken out for does not happen, such as not damaging a car or not having an accident abroad that required medical treatment, then the premiums have been paid and no benefit has been received. However, the cost of having to pay for treatment or to put things right can often outweigh the amount the person or business has paid in premiums, and many would struggle to find the required funds if they did not receive a payout from the insurance company.

Companies also have various types of insurance. As well as buildings and contents to cover them should something happen to their premises such as a fire or flooding, they will also have insurance such as liability insurance which covers them should their advice or actions cause damage.