Before invest on some insurance you can select what is the most appropriate Insurance for you. Here only you can get the list of Insurances later I will describe them
Mainly 2 Types of Insurance
* Life Insurance
* General Insurance
Auto Insurance
Gap Insurance
Home Insurance
Health Insurance
Accident sickness and unemployment Insurance
Casualty Insurance
Life Insurance
Burial Insurance
Property Insurance
Liability Insurance
Other
In Buddhist stories there is a one story ,
One very rich man suddenly got sick and near to die then he call his children and tell there is a bamboo tree in the corner of his garden and cut it after I die. Children do that and saw that whole bamboo tree filled with gold coins. This shows hat from the ancient time people try o full fill the loss occur after they die
but the history of Insurance begin
Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea. (Wikipedia)
It is a Form of risk management taken primarily by people to reduce the problems cause by sudden loss of valuable property or life.
Insurers are companies which cell insurances.
Premium - The amount to be charged for certain amount of insurance coverage
Usually people pay premium monthly. Insurance charge some amount of money per month if something happened to the person or property they Insure Insurers have to pay large amount to the person who had the insurance.
As a example if you Insure your vehicle you should pay monthly premium if the car destroy suddenly they will pay the value of your car else you can't get your paid money back. (may be some insurers pay 50% , That depend on their policies)
That is how it works in very briefly
