Forums » Life Insurance

Role of insurance in Transferring Risk

    • 144 posts
    February 28, 2014 7:04 AM IST
    • Insurance plays a major role in transferring the risk.
    • The most common way for individuals, families, and businesses to transfer is to purchase insurance coverage.
    • When an insurance company agrees to provide a person or a business with insurance coverage, the insurer issues an insurance policy.




              The policy is a written document that contains the terms of the agreement between the

    insurance company and the owner of the policy.


      Policy Benefit:


              The agreement is a legally enforceable contract under which the insurance company

    agrees to pay a certain amount of money known as the policy benefit or policy proceeds.




              When a specific loss occurs provided that the insurer has received a specified amount of

    money, called the premium.


    In general, individuals and businesses can purchase insurance policies

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