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
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