Preview Life is like a game of chance. Twenty-four hours a day, you and your family face the risk of financial ruin from events that are difficult or impossible to predict. Death, disability, accidents, theft, fire, lawsuits are all unpredictable events that could wipe out some or all of your hard-earned assets. However, you don't have to be vulnerable to these risks. This lesson will teach you about the concepts of personal risk and insurance.
Insurance provides protection against possible financial loss.
The financial consequences of failing to obtain the right amount and type of insurance can be disastrous. In all these cases, you should consider the cost of the appropriate insurance protection, and then consider the potential costs to you or your family if no insurance is carried. When you purchase an insurance policy , the insurance company agrees to assume the financial hardships that result from your risk. Insurance companies do so in exchange for a payment, called a premium . This lesson will help you learn how to analyze which insurance is most important to protect your assets and how much is adequate to cover your potential liability.