Definition:

With insurance, sometimes called assurance, the policy is a between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay.

In exchange for payment, known as the premium, the insurer pays for damages to the insured which are caused by covered perils under the policy language (eg fire, theft).

Insurance contracts are designed to meet specific needs and thus have many features not found in many other types of contracts

Assurance is a guarantee to pay (assuming all conditions are adhered to) Hence we refer to life assurance (as we will all die sometime) and cars are insured.

We are able to insure against the following common perils:

Death

Serious illness and disability

Accidental death or disability as a result of accident

We are able to arrange the following policies:

Car

Home

Funeral

Business risk

Insurance companies also offer:

Investment funds

Life assurance investment portfolios

Trusts