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Insurance

Indemnify

The primary purpose of insurance is to indemnify the insured against any financial loss caused by an unexpected event. In simpler terms, insurance aims to restore the insured's financial situation back to its pre-loss state. This provides individuals and businesses with a sense of security and protection against unforeseen circumstances. Therefore, it is crucial for individuals to carefully select insurance policies that best suit their needs and offer adequate coverage. Without proper understanding and consideration of insurance terms, individuals may risk being underinsured in the face of adversity.
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