Insurance is a tool for us to protect ourselves against risks. Risks that are readily available around us that is uncertain. We never know what will happen to us in the future and we always or even never asked ourselves how we can protect ourselves or even our own family members against the mishaps.
It is also a form of risk-management that is used to protect or hedge ourselves from uncertain losses. It is an insurer carrier's responsibility to educate people and help them understand how they can protect themselves from this risks.
Here are some simple insurance jargons to get you started.
Insurer. Who are they?
Insurer is the company that sells the insurance policy to you.
Insured or policyholder? Who are they again?
They are the person or entity that buys the insurance policy from the companies that provide insurance services.
Premium
Premium is the certain amount of insurance coverage that is charged by the company to the policyholders.
How does insurance work and how will we get covered?
The insured pays a premium to the insurer as a guaranteed and relatively small loss in exchange for the insurer's promise to compensate or indemnify the insurer in a case were the insurer faces a financial or personal loss.
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