INSURANCE IS A PROMISE TO PAY A SUM OF MONEY TO COMPENSATE FOR THE ECONOMIC LOSS OF A PERSON OR AN ASSET AS A RESULT OF SOME MISFORTUNE e.g. The Death of a Breadwinner or Destruction of property such as a house or car, or due to illness.

Simply put Insurance involves a group of persons paying funds into a pool so that if and when someone has a financial loss there is money in the pool to compensate the person for the loss. It is based on the principle that persons suffer losses at different times. The oldest insurance scheme on record is one set up for Roman Soldiers to provide for families of those who died in battle.

A good financial Plan without Insurance will fail if there is a misfortune such as death, disability, ill health, hurricane, car accidents, terminal illness, fire, flood, earthquake, etc. Unfortunately, no one is immune to these risks of living and them unpredictable. Only Insurance Companies provide these services.