Insurance Contracts

Insurance contracts are agreements between an individual (the insured) and an insurance company (the insurer). The insured pays a premium, typically monthly or annually, in exchange for financial protection against specific risks, such as accidents, health issues, or property damage. If the insured event occurs, the insurer compensates the insured according to the terms of the contract. This arrangement helps manage risk and provides peace of mind, knowing that potential financial losses can be mitigated through the support of the insurance company. Each policy has specific coverage details, exclusions, and limits, which are essential to understand.