What is insurance & how does it work?

Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured. Most people have some insurance: for their car, their house, their healthcare, or their life.

What is insurance coverage?

The term “coverage” is often used interchangeably with “insurance,” but more specifically, it refers to the individual policy terms, such as what causes of loss are covered, who or what is protected, which section of the policy comes into play, and how much indemnification is provided.

What are insurance premiums?

Premiums are the regular payments policyholders make to maintain their insurance coverage. Premium amounts are determined by various factors, including the type and amount of coverage, the policyholder's risk profile, and the insurer's underwriting guidelines.