You can say this, in simple a language is that it is an agreement with the insurance company that provides the insurance for your life.
This is the instrument in the future when you get any loss it takes to play the role.
If you are injured in an accident, you are suffering from illness or you died then there the insurance company takes the responsibility for your treatment. Or you can say that after your death according to that agreement they pay the agreed amount of money according to your agreement to, your family. This is called insurance.
Means in every condition you can get the advantage of insurance for your life .you can live happily. with your life or after your death.
There are a lot of Benefits of insurance that exist in every condition. If you have insurance then you don’t think that after my death what will be happened with my family. Then, there you can’t be anxious about the family.
Life insurance means if you have taken the life insurance from the insurance company then if the main guardian got accidentally death then after the death of the main guardian The insurance money amount takes care of the family.
So it is important that any person of the family should have taken advantage of the insurance for any unexpected problem.
These days everybody knows that the money for the treatment of any disease increasing like Everest.
Any simple family man cannot take any treatment in the private hospital with less amount.they should have the money to treatment for the disease, but they have not a sufficient amount of money.
So if any person has bought the health insurance policy then they can take treatment in any private hospital.
And the money of treatment of them, insurance companies take the responsibility to take care of them according to an insurance policy.
(b)Crop insurance and farmer insurance
If any farmer buys the crop insurance form any insurance company then if the crop of that farmer has destroyed by the disease of crop or burnt.
Then the company takes the responsibility to pay the amount according to agreement of that crop insurance.
Farmers are not aware to take advantage of crop insurance.
So it is important that farmers should have bought crop insurance. But these days farmers are not taking advantage of crop insurance.
Because the crop has destroyed then the insurance the company takes the survey around of that destroyed crop or farmer and ask from another farmer around him then after that survey gives the amount of insurance.
These days it is very important to buy motor insurance from an insurance company to ride the motor on the road.
If any unexpected accident happens then insurance companies pay the amount according to agreement of that policy of insurance.
Or If your motor has stolen by any person then insurance companies also give the amount of that policy.
Or if you have done any accident then the insurance company gives the amount according to the THIRD PARTY INSURANCE.