Hamishmar

Insurance

Insurance is a financial arrangement that provides protection against financial loss or risk. It involves an agreement between an individual or entity (the policyholder) and an insurance company, where the policyholder pays a regular premium in exchange for the insurer’s promise to compensate for specified losses or damages. These losses can arise from various events such as accidents, thefts, illnesses, or natural disasters. Insurance operates on the principle of risk management, where the financial risks are pooled among many policyholders, allowing for the sharing of losses. Different types of insurance include health, life, property, auto, and liability insurance, each tailored to cover specific types of risks. The goal of insurance is to provide security and peace of mind by mitigating the financial impact of unforeseen events.