Meaning and Benefits of Insurance

The video tutorial explores the concept of insurance, explaining its importance and benefits. It defines insurance as a contract providing financial protection against unexpected events. The tutorial details how insurance works, including the role of premiums and claims. It also covers various types of insurance, such as health, fire, and life insurance, highlighting their specific purposes. The video concludes by discussing the benefits of insurance, including financial security and legal requirements, emphasizing its role in providing peace of mind and protection against financial burdens.

What is the primary purpose of insurance?

• To ensure a luxurious lifestyle

• To avoid paying taxes

• To increase personal wealth

• To provide financial protection against unexpected events

What is a premium in the context of insurance?

• A bonus received from the insurance company

• A one-time payment for a service

• A penalty for late payments

• A monthly or yearly fee paid for an insurance policy

How do insurance companies manage to pay large claim amounts?

• By borrowing money from banks

• By using the premiums collected and investing them

• By reducing the number of claims

• By increasing the premiums suddenly

Which type of insurance provides financial support for medical expenses?

• Fire insurance

• Health insurance

• Life insurance

• Car insurance

Why is car insurance often legally required?

• To ensure responsible driving and protect all parties in accidents

• To increase government revenue

• To promote the sale of cars

• To provide discounts on car maintenance