Risk is an uncertain event which turn into unfavorable outcome. Thus risk can be controlled by implementing risk controlling measures
Now in Personal Finance, risk relates to individual life as he/she may be the bread winner of the family. Thus it is equally important to cover this risk by taking insurance cover
When person take insurance cover he/she pay premium, which is consideration in order to secure the benefits offered by the insurance contract
Most of the time person is unaware whether he/she really need insurance cover and if yes then how much? Many times people buy insurance for tax saving purpose
Broadly there are two types of insurance cover i.e. Life Insurance & General Insurance. Life insurance consist of Term Plans/Endowment Plans etc. and General Insurance consist of Health Insurance/Car Insurance etc.
