What Is Insurance?
Insurance is an agreement represented by a policy, under which an individual or corporation receives financial protection or payment from an insurer in the event of a loss. The company pools clients' risks to make funds available to pay for the claims.
People obtain insurance not only to reduce risks posed by unforeseen occurrences but also to assist with common expenses, such as annual medical checkups and dentist appointments.
Moreover, insurance firms negotiate discounts with healthcare providers, and their clients pay the discounted rates.
The most challenging aspect of insurance is paying for something you hope you never need. Nobody wants anything unpleasant to happen to them. However, if you experience a loss without insurance, you may be in a precarious financial situation.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.