Question 1

What is insurance?

Accepted Answer

Insurance is a financial arrangement where you pay a premium to an insurer to protect yourself against financial losses arising from unexpected events.

Question 2

Why is insurance important?

Accepted Answer

Insurance protects your savings, income, and family from financial shocks caused by accidents, illness, death, or property damage.

Question 3

What are the main types of insurance?

Accepted Answer

The main types of insurance include life insurance, health insurance, motor insurance, home insurance, travel insurance, and business insurance.

Question 4

Is insurance an investment?

Accepted Answer

No. Insurance is meant for protection, not investment. Its primary purpose is risk coverage and financial security.

Question 5

Which insurance should I buy first?

Accepted Answer

Health insurance and term life insurance should be prioritized as they protect your health expenses and family income.