Insurance is one of the major forms of risk transfer, and it permits uncertainty to be replaced by certainty through insurance indemnity
Insurance
- Refers to protection against an event that might happen
- Provides cover against a risk
Assurance
- Refers to protection against an event that will happen
- covers an event that is definite
- Assurance policies are associated with life cover
Considerations before opting for insurance
- Don't risk a lot for a litte
- Don't risk more than what you can afford to lose
- consider outcomes of the risk carefully
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