insurance

Insurance is used to oppose against the risk of losing or damaging an item that an individual posesses. It can be thought of a guaranteed and known small loss to prevent a large and devastating loss.

An **insurer** is a company selling the insurance.

An **insured** or **policyholder** is the person buying the insurance.

Advantages of Insurance:

- It offers a form of protection and security. - Lower costs. - Avoids the risk of great losses.

Disadvantages of insurance:

- Insurance costs.