Why we need the Insurance?

In life, losses are sometimes unavoidable. People may become ill and lose income or savings to pay off medical bills. Individuals or their relatives may die of illness or accidents. People's home or other property may suffer damage or theft. People also may accidentally cause injury to other damage to the proporty of others.

Noone knows in advance when a loss will occur or how serious that loss will be. The uncertainty surrounding potetial losses is known as risk. Insurance offers a way for people to replace risk with known costs - the costs of buying and maintaining insurance policies.