Many people have different views about the meaning of insurance, therefore, this is a true understanding of insurance.
Insurance is not gambling or investing. Indeed, in modern insurance there is a component of investment, but this should be seen as complementary rather than a major component. Insurance aims to offer protection against risks that may arise. It could be said in brief insurance is a system where we share our risk with others, the insurance company.
Existing insurance from time immemorial pilgrims. For example in the code of Hammurabi, ancient Babylonian law, no law that addresses credit insurance. This law is intended to allow the traders to obtain loans from investors. If there is an accident, like a sinking ship, the borrower does not have to repay their loans. While the trade if successful, they pay the loan with an interest.
In our day today, the concept of insurance is about sharing risk. Insurance companies in the world pay attention to the frequency of loss statistics. For example, the possibility of illness, critical illness, and treatment costs. This will be used to predict how much insurance premiums to be paid by the client.
Funds obtained by the insurance company will be used to pay claims presented by clients when they suffer losses.
Do you think you are free from any risk of loss? Which type of insurance that suits you best? How much mortgage you receive now? All this should be considered.