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Insurance
Every day we take risks and around us many other risks are taking place at any given time. This means that our possessions, our lives and our health are constantly being tested in various different ways. Theoretically, as well as causing great grief, this could cause great financial hardship as well. The loss of possessions might require their replacement and the loss of someone's life will require many different arrangements that must be carried out.
This is where insurance is an option (or a necessity). Insurance essentially is a monetary compensation that can be paid out in the case of losses in the form of the mentioned categories. To have insurance, people usually make regular payments to insurance companies (sometimes monthly or in other cases annually) which will either cover them for specific items or for many items, the latter being known as blanket insurance' which includes homeowners insurance.
Other forms of insurance are compulsory, such as car insurance. Driving a car without insurance is illegal and so someone would face consequences if they were caught by the police.