As a part of chronic disease management, insurance is a widely used supplementary tool. This article will introduce Insurance in general and move deeper in the upcoming articles.

To say simply –

Insurance is a legal contract in which an individual receives financial protection against a particular loss from an insurance company.

It is a tool used to hedge against the financial risk which may result from full or partial damage to the insured property or person. Insurance company charge a particular amount of money against the risk they are taking. It is called Insurance Premium. Premium is the price of insurance which may be paid either one time or installment basis.

There is another type of cost associated with insurance. It is called – deductible. Deductible is charged to meet the out of pocket expense of the insurance company whenever claim is made. It can apply per-policy or per-claim basis which depend on insurance policy type.

Ranging from tangible assets like land to intangible assets like life, you can insure a lot of things.
When you are insuring your life, it is called life insurance.

Natural death, disease, or accident may bring an ending line to our life. Whatever the reason is , our death is always associated with some financial burdens and losses to our near and dear people.

To safeguard the financial losses, we may consider life insurance.

According to Investopedia –

Life insurance is a protection against financial loss that would result from the premature death of an insured.

The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. The death benefit is paid by a life insurer in consideration for premium payments made by the insured.

In the next article, I will introduce Health Insurance and how does it work for managing health.