Insurance

The article may contain affiliate links from partners. The words, opinions, and reviews are our own. Learn how we make money to support our financial wellness mission.

Insurance is protection against a specific loss, such as fire, wind, etc., over a period of time that is secured by the payment of a regularly scheduled premium. It’s a risk management tool that protects an individual from specific financial losses under specific terms and premium payments, as described in a written policy document.

Insurance is appropriate when you want to protect against a significant monetary loss. Insurance allows individuals, businesses and other entities to protect themselves against significant potential losses and financial hardship at a reasonably affordable rate.

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

The types of insurance exist are:

Main Menu