You want to protect your family from harm. Whether it's fire, serious illness, accidents or the financial harm they cause, wouldn't it be great if someone else handled the risk? Insurance does just that. You pay the insurance company a payment called a premium and the insurance company spreads it's risk among many client. When something happens that you are insured for, you get paid for your financial loss.
Insurance protects again four kinds of losses.
Protect Against Four Major Losses
- Financial loss
Example: You die, but your family is financially
taken care of through life insurance.
- Disaster Loss
Example: Your house or car is damaged by fire,
burglary or weather. The insurance pays for repair or replacement.
- Liability
Example: You cause an auto accident and the other
person is hurt. Your insurance covers the other person's
health care.
- Sickness and death
Example: Your spouse becomes sick and needs an
operation. Your health insurance covers the expenses.
