What is a kind of protection against financial loss?

Correct option is C

Insurance is a financial product designed to provide protection against financial loss or risk. It works by providing coverage for events that could lead to financial hardship, such as accidents, health issues, damage to property, or even loss of life. The person or entity paying for the insurance (the policyholder) is compensated by the insurer if the covered event occurs.
Information Booster: Insurance can be seen as a form of risk management where individuals or businesses pay premiums in exchange for financial protection. There are different types of insurance, such as health insurance, life insurance, automobile insurance, and property insurance, each designed to mitigate specific types of financial risk. The underlying principle is pooling the risk of many to help protect against large financial losses from unexpected events.
Additional Knowledge:
· Saving Bank Account: While a savings account helps individuals save money and earn interest, it does not protect against financial loss from risks like accidents or property damage.
· Bank: A bank is a financial institution that offers services such as savings, loans, and investments, but it doesn't provide direct protection against financial losses from specific risks.
· Financial Institution: While financial institutions offer a variety of financial services, including investment and loan products, they do not specifically provide protection against financial loss unless they offer insurance products.