I feel stupid for asking this but,What is insurance?

Question

I feel stupid for asking this but,What is insurance?

Answer 1

www.dictionary.com

Answer 2

http://dictionary.reference.com/browse/I...

http://en.wikipedia.org/wiki/Insurance

hope it helps!

After reading that, i now know what insurance is :D

because, silly me, i didnt know either :X

Answer 3

In simple terms it is spreading of risk.  If everyone pays a little money into the pot.  When someone needs some there is money available for a loss.  It is not meant to get you more than what your loss cost but just bring you back to a pre-loss condition.

Answer 4

When you buy insurance you are paying a company to assume a financial risk that you are unwilling to assume yourself.

Example 1: I can afford to make minor repairs on my house myself.  This is a risk that I am willing to accept. I am not willing to risk my house burning down or being destroyed in a storm, so I pay Shelter Insurance company about $500 per year so that if need be they will pay to replace it or make major repairs. Also, my mortgage company requires it.

Example 2: I can afford to go see a doctor now and again. This is a risk that I am willing to accept. I can not afford to pay the doctor and or hospital bills if I had a serious illness or accident. Therefore I buy health insurance that pays the bills after I reach a certain deductible amount.

Don

Answer 5

Insurance:

A promise of compensation for specific potential future losses in exchange for a periodic payment.

Insurance is a financial vehicle designed to pay for future losses which are unexpected and not planned.

Answer 6

It is mainly for protection and help. Health insurance, car insurance, and all sorts. What they do is like if you have a high medical bill they pay a little bit of it depending on your insurance company is what your job is...

That is my definition basically.

Answer 7

Don't feel stupid, believe it or not, even those of us who know what it is, don't always understand the industry, all it's ins and outs. Here is a basic definition. You pay an insurance company a monthly, quarterly or annual premium, say $300.00 per month to cover you for things like car accidents, illness, damage to your home, or whatever, there are many different types of insurance.

If something happens to your car, like an accident, they then pay for you to get it fixed or replaced. If you have a house fire, an insurance company will pay to have the damages repaired, or the house replaced. If you become sick, insurance will pay for doctor visits, hospital stay, etc.

When you have a car accident, for example, you submit a claim to the insurance company. They send someone out to look at the damage. This person is called an adjustor. His or her job is to determine the amount of the damages and offer the approved amount to the repair shop to do the work. There are adjustors in home owners insurance and in medical insurance, in any kind of insurance.

This is the basics of what insurance is. The amount you pay in premiums depends on the ammount and type of protection you want.

I hope this helped

Answer 8

It's when something unexpected happen, you have a fallback.  Like when somebody unexpectedly died, the insurance will take care of the burial or even the debts left behind.  Health insurance also takes care of the medical bills.

To equip you with more information.  Go to this site:

www.surelyinsured.com

Answer 9

Insurance is a way to finance troubles you may have down the road, and if you cause others hardship, and can be required by law.