What is the concept of insurance?

Rebeca Mckin: hello,There are many insurance available. Insurances are really needed. These can ensure us an anxiety free life.

Toshiko Reimers: Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.I googled insurance definition, the above is from Wikipedia, link is below in source.

Rebeca Mckin: The basic concept, is sharing of risk.100 people pay into a kitty. One hits the jackpot (has a claim) and gets reimbursed from all 100 that paid in. SHARING OF COST. That's why, on average, people CANNOT get more out of insurance than they pay in. The system would implode. A very small percentage of the people that pay in, get out a WAY LOT more than they paid in. The larger the percentage that get out more than they paid in, the more the insurance costs, for EVERYONE. That's why ! health insurance is so expensive - and why car insurance for 16 year old boys is so expensive. And why life insurance for 20 year olds is so CHEAP....Show more

Donnell Nocella: The concept of insurance is paying a premium in order to transfer the risk of financial loss to a third party.

Simona Bulwinkle: the answer about the transfer of risk is the correct concept. An unknown potential cost to a known fixed certain cost

Malissa Porth: Basically you're betting you will have an accident, or die and they're betting you won't . bottom line. Bang, there it is

Lashawnda Anteby: Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Click for more: http://bit.ly/1eUylaw