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Insurance is a contract between the insurance company and the policyholder where the policyholder pays a premium in exchange for protection against financial losses due to unforeseen events.
There are various types of insurance available, including life insurance, health insurance, auto insurance, homeowner's insurance, renters insurance, disability insurance, and business insurance.
The amount of insurance coverage you need depends on various factors, including your income, assets, and lifestyle. It's best to consult with an insurance agent or financial advisor to determine the appropriate amount of coverage for your needs.
Insurance works by pooling premiums from many individuals or entities, and then using those funds to pay out claims to those who experience losses or damages covered by the insurance policy.
The purpose of insurance is to protect individuals and entities from financial losses or damages that may arise from unforeseen events.
A deductible is the amount of money an individual or entity is responsible for paying out of pocket before an insurance company will start paying for covered losses or damages.