How does insurance work?
Insurance is a way to deal with the risks you face. When you buy insurance, you buy protection against financial losses that come out of the blue. The insurance company pays you, or whoever you choose; if you don't have insurance and get hurt, you may be responsible for everything associated with costs. Having the right insurance is important because the risks you face can change the way you live. A written contract is what an insurance policy is between the person who owns the policy (the business that gets the insurance) and the insurer (the insurance company). The person who buys the policy is not always the person who is covered by it. A person or business can get an insurance policy that protects someone else (making them the policyholder) or an entity (who is the insured). When a company buys life insurance for an employee, the company is the policyholder, and the employee is the insured. How does insurance make you less likely to lose money? Imagine driving your ca