What is an Insurance?

Insurance is a contractual agreement where one party, known as the insurer or insurance company, promises to compensate another party, the insured, for any loss or damage incurred. In return, the insured pays a specified amount called the premium.

The insured receives a document called the insurance policy, which outlines the terms and conditions under which the insurer will provide compensation. If you want to grow your savings without tracking the stock market daily, mutual funds are for you.