Insurance works by individuals paying regular premiums to an insurance provider. In return, the provider covers specified expenses in the event of covered incidents, ensuring policyholders receive financial assistance when needed.

Health insurance is crucial for covering medical expenses, including hospital stays, surgeries, and preventive care. It safeguards individuals from high healthcare costs, promoting timely and adequate medical attention.

Property insurance typically covers damage to or loss of physical assets, such as homes or belongings. It protects against risks like fire, theft, or natural disasters, providing financial assistance to repair or replace damaged property.