Insurance

Insurance is complicated and many people find it confusing. Basically, insurance is a system to manage financial risk by spreading an individual's losses over a large group of people.

What is Insurance?

Without insurance, a single unfortunate event could wipe out all the assets of an individual, family, or business. With insurance, the financial risks of many are pooled together and transferred to the insurance company, which accepts these risks in return for the payment of a premium.

By Carla Wakeman