The most important benefit of insurance is that it provides?

The most important benefit of insurance is that it provides?

Answer Details

Insurance provides protection against risks. In other words, it helps individuals or organizations to manage and mitigate the financial impact of unexpected events or losses. By paying regular premiums to an insurance company, the policyholder transfers the risk of potential losses to the insurer. In the event of a covered loss, the insurer provides compensation to the policyholder, thus reducing the financial impact of the loss. This can be especially important in situations where the cost of a loss could be catastrophic, such as in cases of major property damage, medical expenses, or liability claims.