What is insurance? How does it work?

Insurance is a way of protecting yourself, your family, and your possessions against financial losses.

It works by transferring the risk of a financial loss from the insured to the insurer, who agrees to pay a predetermined amount of money in the event of a covered loss.

Common types of insurance include health, life, auto, home, and business insurance.

Health insurance covers medical expenses for illnesses or injuries.

Life insurance pays a lump sum to the beneficiaries when the insured person passes away.

Auto insurance covers the cost of repair or replacement of your car in the event of an accident or other damage.

Home and business insurance provide coverage for damage or loss of property due to theft, fire, or other disasters.

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