The useful idea
- The useful idea
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury.
- How it works
It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss.
- Why it matters
An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter.
Why this matters
Use Insurance to compare the trade-offs before committing money.
Try this
Use Insurance to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Insurance?
- The useful idea — correct
- How it works
- Why it matters
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury.
General education only — not personal financial advice.