private insurance

Private insurance is a financial product that individuals or businesses purchase to protect against potential losses or damages. It operates on the principle of risk-sharing, where many people pay regular premiums to an insurance company. In return, the company provides financial support or compensation when a covered event occurs, such as illness, accidents, or property damage. Unlike public insurance, which is typically government-funded, private insurance is offered by various companies and can vary widely in terms of coverage options, costs, and benefits. It allows individuals to manage risks and secure their financial stability.