CONCEPT OF RISK

Concept of Risk

Ø In insurance, risk is applied to certain assets to certain assets that can be insured, such as a human life, a house, a car, etc.

Ø Here are some of the definitions of risk:

·        Risk is the chance of damage or loss.

·        Risk is doubt concerning the outcome of a situation.

·        Risk is something or someone considered to be a potential hazard

·        Risk to human life

·        Life insurance mainly deals with 2 risks – premature death and living too long

·        Life insurance companies offer additional benefits of riders along with life insurance plans to cover the risk of death of death or due to accident and illness