Insurance help us to protect our financial future. It is certainly a tremendous relief if you have the insurance. It provides the monetary compensation against the predetermined risk. However you need to pay the premium which is calculated on behalf of the coverage which you get. Suppose you are riding a car then you need to go for the car insurance. You also need to go for the health insurance.

In this article, I am going to talk about insurance, its history, importance as well as the types of the insurance. So let us begin with the history of insurance.

1. History 
The history of insurance takes us back in the 1200 B.C. At that time the merchants used to pay the money only when they were able to make sure that the goods have arrived safely. There was a system called bottomry which was analogous to insurance in the 1200 B.C. As the trade went on growing the practice of insurance became the need of the hour. Now almost every American has some sort of insurance. In fact the insurance is considered to be one of the big sectors like the real estate.

2. Importance 
You should keep in mind the law of large numbers. According to this law the power to predict about the losses increases as the group size increases. You can check out for this law. However, I want to present some more ideas. Suppose, you are a big family and you are the only person who is earning. Do you feel that the whole family is dependent on you? It is certainly true. The whole family is dependent on you. Suppose something happens to you. Then it is quite sure that whole family will be disturbed. That is why you are asked to go for the life insurance. It will be a certain limit of help for your family to recover from the loss.

3. Types of insurance 
There are four broad categories in which you can divide the insurance. They are the property and the causality insurance, life insurance, health insurance as well as the old age and the unemployment insurance. However, they all have two things in common. They are the coverage and premium. The premium depends upon the coverage. Suppose, you choose larger coverage then it is quite sure that you will have to pay larger premium. Similarly each of them is important in different ways.

So, these are some points about insurance. You need to go for it. It is certainly the need of all the Americans. However, it is quite glad to note that most of the Americans have some sort of insurance.