Insurance : Importance, Types and Benefits Updated on JUNE 19 2020 The life and property of an individual are surrounded by the risk of death, disability or destruction. These risks may result in financial losses. Insurance is a prudent way to transfer such risks to an insurance company. In this article we cover the following topics: What is Insurance? How does insurance work? What are the types of insurance available? Life insurance Health insurance Car Insurance Education Insurance Home Insurance What are the tax benefits on insurance? Conclusion 1. What is Insurance? Insurance is a legal agreement between two parties i.e. the insurance company (insurer) and the individual (insured). In this, the insurance company promises to make good the losses of the insured on happening of the insured contingency. The contingency is the event which causes a loss. It can be the death of the policyholder or damage/destruction of the property. It’s called a conti