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
