Insurance is an operation by which a person( The insurer) undertakes to give a service, under an insurance contract, for the benefit of another existent( the insured) upon the circumstance of a threat and subject to the payment of a donation or a decoration. The threat constitutes the object of the insurance. An insured takes out insurance to cover himself against dangerous events( illness, fire, theft, death,etc.) or against the pitfalls associated with certain objects he owns( auto, home,etc.).
In the event of the circumstance of a threat, the insurer undertakes to pay a benefit in the form of plutocrat either to the ensured, or to a third party, or to the devisee within the frame of life insurance. In return for this service, the insured pays a decoration or a donation to the insurer. This quantum corresponds to the cost of threat and the operating costs of the insurer.
Insurance must be taken out with a company that's authorized to carry out this exertion. It can be an insurance company or indeed a bank. The subscription is made by subscribing an insurance contract.