Insurance is by nature a contract between two parties, whereby one party called the insurer undertakes to pay the other party called the insured, a fixed amount of money on the happening of a certain event, in exchange for a fixed amount called premium.

Insurance doesn’t mean a protection from death, disability or any other mishap. It’s basically a protection against a financial loss, which can arise out of an unexpected event. By paying a small sum of money, a person can safeguard herself/himself and her/his family financially from an unfortunate event, like say, death of the earning member in a family.

So by essence insurance helps you in your risk management. The risk can arise in the form of accidents, fire, flood, theft, terror attacks (like the one we see on daily basis in Pakistan recently), some major illness, or even death.

The general perception of the common man regarding insurance is limited only to life insurance, and to some extent health or medical insurance. But risk management does not end here. Adequate amount of insurance in the form of life as well as non-life insurance is the right way to manage risks.

The different types of insurance products available to people are life insurance, health or medical insurance, vehicle insurance, home insurance, travel insurance, etc. Though a number of insurances are available today it is not necessary to buy all of them. But a few are must for risk management.

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Life Insurance Insurance, Life Assurance