Insurance is a financial tool that helps protect you, your family, or your business from unexpected losses. It works by transferring risk from an individual or organization to an insurance company in exchange for regular payments called premiums.
How Insurance Works
You pay a premium to an insurer, who agrees to cover certain types of losses or damages, as outlined in your insurance policy. If an insured event happens—like a car accident, a house fire, or a health issue—the insurer helps pay the costs, reducing your financial burden.
Common Types of Insurance
Health Insurance: Covers medical bills and hospital visits.
Auto Insurance: Protects against vehicle damage and liability from accidents.
Homeowners Insurance: Covers your home and belongings against damage or theft.
Life Insurance: Provides money to your beneficiaries after your death.
Business Insurance: Protects companies against risks like property damage, liability, or employee injuries.
Benefits of Insurance
Protects your finances from unexpected costs
Provides peace of mind
Helps comply with legal requirements (like car insurance)
Supports recovery after accidents or disasters
Things to Consider When Choosing Insurance
What risks do you need to protect against?
How much coverage do you need?
What premium fits your budget?
What deductibles are you comfortable with?
The insurer’s reputation for customer service and claims handling
