Insurance – Types and Basics

Before start this video we should have to know the definition of insurance Insurance is a means of protection from financial loss

It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss Insurance became far more sophisticated in Enlightenment era Europe, and specialized varieties developed Property insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new plan for London in 1667" Insurance companies may be classified into two groups: Life insurance companies, which sell life insurance, annuities and pensions products

Non-life or property/casualty insurance companies, which sell other types of insurance In this modern age there are so many types of insurance The most common type is Life Insurance Behind this, there are also many types of insurance i

e Auto or vehicle insurance Gap insurance Health insurance and Dental insurance Income protection insurance Casualty insurance Burial insurance Property insurance Liability insurance Payment protection insurance At last, Insurance is just a risk transfer mechanism wherein the financial burden which may arise due to some fortuitous event is transferred to a bigger entity called an Insurance Company by way of paying premiums This only reduces the financial burden and not the actual chances of happening of an event