The main aim of insurance is to restore the status of the people before the unexpected things happen. This is known as indemnity. You can claim for the payment from the insurance company if any such hazardous things happen. You cannot alone bear the expenses. The cost of the claim will be covered by the insurance company. Many people pay money as premiums to the insurance company. The insurance company will take this premium money to cover the claim of the people. The expenses will be covered by the insurance company which is known as transfer of risk. You can transfer the risk to the insurance company. The insurance company will avoid the financial problems.
The chronic diseases like cancer will make you bankrupt. If you are insured prior the detection of disease and pay monthly premium to insurance company you will get benefits of payment of medical expense. The main aim to purchase the insurance is for the peace of mind. It will help you to live for daily living and less worrying about what the unexpected things happen in the future. There are many types of insurance like life and health insurance which deals with the health and life of an individual. Medical insurance deals with bills claimed by the insured people for medical purpose. Auto insurance is one which deals with the four wheelers like car, auto. Many people are aware of insurance and they get insured with the insurance company to handle the financial problem and to get peace of mind.