What is Insurance-Life Insurance-Insurance Policies-Insurance Premium-ASN Blogs

Insurance is not the name of any financial benefit, but it is the name of a kind of satisfaction you get in case of any loss. You must keep some money every year in any institution or company that will protect you from any loss. Many government and non-government organizations offer these policies.

What is insurance?

The word insurance is derived from the word insure which means satisfaction or comfort. And suppose you look at its meaning in detail. In that case, Insure means arranging for compensation in the event of damage or loss of property or injury to or the death of somebody or securing or protecting someone against a possible contingency.

In the same way, the word insurance means practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. We can also say that the word insurance is a thing protecting against a possible eventuality.

What is Insurance-Life Insurance-Terms of Insurance-ASN Blogs
Life Insurance

Insurance is a kind of security and satisfaction of having something to live a better life. , when you are worried about the future of yourself or your loved ones and in that concern, you take some protective measures to help you to some extent in any unpleasant situation, then this is called insurance.

You can get many types of Insurance like, vehicle, property, and life insurance. If you have your property or your car insured, in case of any damage to them, the government cooperates with you in covering that damage. In life insurance, in case of the death of an applier, a handsome amount of money is given to the nominee of the person.

The insurance companies provide enough money for the insured's family to live comfortably for the next five to ten years. Government and private organizations provide insurance policies so that their employees can get some financial benefits.

General Insurance

This is the contract that offers and provides compensation to the insured people for the loss of anything like, loss of money, house, property, car, motorcycle, health, etc. becomes entitled to a premium.

What is Insurance-Life Insurance-Terms of Insurance-ASN Blogs
General Insurance

It is the amount that the person (insured) pays to the company or the government who is taking the insurance offer and he pays this amount every month or annuity. Insured one does this to get a kind of protection coverage for his family in case of any risk. Risk of loss of life, money, property, or vehicle.


It is a fixed sum of money paid to someone each year, typically for the rest of their life.

It is the amount that a company or government agency pays to who is insured or to the person who has taken out the insurance. Agency or company may give it monthly or yearly, it is depending on the policy of the institution. In which application is made.


What is Insurance-Life Insurance-Terms of Insurance-ASN Blogs

A declaration in Insurance policies is a form or a paper that contains all the information about the insurance policy and the policyholder such as his name, full address, age, vehicle details, type of coverage he is going to take, etc. Enrollment is mandatory in all Insurance companies.

Insured and Insurer

An Insured is a person who insures himself, his property, a vehicle, etc. in a company or agency. That means he who is taking insurance benefits and who enrolls himself in an Insurance policy of any organization is called an insured.



A company, government agency, or private organization that is offering the Insurance policy is called Insurer. In simple words, the insurer is the organization that gives a specific amount of money to the insured one.

Many organizations are providing insurance together.

When to get Vehicle insurance? 

Car or any vehicle insurance is taken only when you are the owner of any vehicle like a car, motorcycle, etc. or when you have taken the car or any other vehicle and the policy is applicable in case of theft or accident with the car. It also has its specific application process, after which one is entitled to get insurance from any agency.

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Writer: Haniya Khan
Publisher: AHSAN ALI

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