Insurance is a way to protect yourself from big financial problems. It works like this: you pay a small amount of money regularly (called a premium), and if something bad happens, the insurance company helps pay the cost.
For example:
- If your car crashes, car insurance pays for repairs.
- If you get sick, health insurance helps with medical bills.
- If someone dies, life insurance supports their family.
We can’t always stop bad things from happening, but insurance helps reduce the loss. It’s like a safety net.
Types of common insurance:
- Life Insurance – helps your family if you die.
- Health Insurance – pays medical bills.
- Car Insurance – covers accidents and damage.
- Home Insurance – protects your house from fire or theft.
Why do we need insurance?
Because emergencies are expensive. Insurance helps you avoid spending all your savings at once. It gives you peace of mind and security.
